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COPYRIGHT DEPOSm 



AUTOMOBILE SELLING 



Automobile Selling 

A Manual for Dealers 



BY 

PAUL H. NYSTROM, Ph.D. 

DIRECTOR OF SALES AND OF RESEARCH 
INTERNATIONAL MAGAZINE CO. 



MOTOR 

THE NATIONAL MAGAZINE OF MOTORING 

119 West 40th Street 

New York 






Copyright, 1919, by 
MOTOR 

THE NATIONAL MAGAZINE OF MOTORING 



JUN 

©CI.A530109 

I 



PREFACE 

This is a book that every automobile dealer should read. 
It matters not whether the dealer's business is large or 
small, whether it is located in a large city or a small 
town, he will find in this work practical suggestions that 
can be put to profitable use. A glance at the Table of 
Contents will show its scope. 

The book outlines the essentials of successful manage- 
ment in the automobile business. It presents workable 
plans, not theories. At the same time it presents the rea- 
sons why. It not only aims to show the dealer how to 
do the various things that need to be done in the best and 
most up-to-date way in an automobile dealer's business, 
it aims to stimulate the dealer to do his work intelligently. 
It is, therefore, not only a manual on automobile dealing, 
it is also a text book, a means of education. 

There are a great many suggestions offered in the vol- 
ume. There are workable ideas presented on every page. 
To get the greatest number of good things into the smallest 
space, all narratives or stories and long explanations how 
the plans were discovered or first applied have been elimi- 
nated. The statements are made in a straight-from-the- 
shoulder fashion. 

This book is not fiction. It is not written in fiction style. 
Every idea presented has been drawn from successful 
practice. Every plan outlined is now in use among dealers 



PREFACE 

scattered all over the country. It has been elaborately 
prepared for the busy man whose time is money and who 
wants to learn what successful dealers are doing elsewhere. 

The author of the book, Paul H. Nystrom, has had an 
extraordinary training for preparing this book. For 
nearly two years he conducted intensive investigations on 
the best ways of selling employed by automobile dealers, 
garages, accessory and tire stores all over America. Sev- 
eral hundred places were visited and studied. Reports were 
obtained from many more. He has, himself, had experi- 
ence as a retailer. In addition to these practical lines of 
observation he has had another field of experience with 
retailers that has proved of value in preparing this work. 
For a number of years he was in charge of dealers' short 
courses, merchants* institutes, and extension classes for 
retailers in the Universities of Wisconsin and Minnesota. 
Nearly three thousand dealers were students in his courses. 
For the last two years Dr. Nystrom has been in charge of 
the Bureau of Merchandising Research of the Interna- 
tional Magazine Company. In this capacity he has con- 
tinued his studies of the automobile selling field up to the 
time of writing this book. In this book are presented 
the carefully compiled observations of the author's rich 
experience. 

"Automobile Selling" is presented to the public with the 
assurance that it will contribute towards putting the auto- 
mobile business upon a more certain basis and that it will 
help those who study it to greater progress and success. 

The Publishers. 



VI 



TABLE OF CONTENTS 

PAGE 

PREFACE v 

CHAPTER 

I. OPPORTUNITY IN THE AUTOMOBILE BUSI- 
NESS i 

The Growth of the Industry . . i 

Present Demand for Cars 3 

The Uses of the Automobile 5 

Why the Industry will Continue to Grow 6 

Greater Skill in Selling will Command Premium 7 

II. A PLACE OF BUSINESS THAT WILL HELP. ... 9 

Locality 9 

What Car 10 

Location in Community 12 

How the Location Helps 13 

III. BUYING A BUSINESS VERSUS STARTING A 

NEW ONE 15 

How to Analyze an Old Business 15 

The Inventory 16 

Good Will 17 

111 Will 18 

IV. FITTING YOUR PLACE OF BUSINESS TO HELP 

MAKE SALES 19 

Building 19 

Architecture 20 

Windows 21 

Window Displays 21 

Principles of Effective Display 22 

Store Arrangement 24 

Furniture 25 

vii 



TABLE OF CONTENTS 

CHAPTER PAGE 

Planning for Displays 26 

Bargain Department 27 

Ventilation 27 

Order 28 

Cleanliness 28 

Care of Cars 28 

Conveniences 29 

V. WHO YOUR PROSPECTS ARE AND HOW TO 

FIND THEM 30 

Automobiles, Like Other Goods, Must be Sold , 30 

Nearly Everybody is at Some Time a Prospect 31 

Special Classes of Prospects 31 

Why Concentrate on the Bankers and Merchants . . 33 

Present Car Owners 34 

Special Methods of Securing Names 35 

The Prospect Record 36 

Preliminary Information About Prospects 36 

VI. MANAGEMENT OF EMPLOYEES 38 

Good Employees Needed 38 

Analysis of Job 38 

Study of Applicant 38 

A Check-list Needed 39 

A Model Application Blank 39 

Salaries 42 

Commissions 42 

Quotas and Bonuses 42 

Profit Sharing .. 44 

Stock Ownership 46 

Other Incentives 47 

Training Employees 47 

VII. SOME DESIRABLE QUALITIES AUTOMOBILE 

SALESMEN SHOULD HAVE 49 

Health 49 

Personality 49 

Honesty 49 

viii 



TABLE OF CONTENTS 

CHAPTER PAGE 

Industry 49 

Tact 50 

Knowledge Concerning Merchandise and of Business 

Methods 50 

Confidence in His Own Ability to Sell Cars 51 

Enthusiasm 51 

VIII. WHAT THE AUTOMOBILE SALESMAN SHOULD 

KNOW ABOUT HIS CAR 53 

Salesmen Can Not be Technically Trained 53 

Knowledge Needed by Salesmen 54 

How to Secure the Knowledge Needed 54 

What Salesman Should Know About His Car 56 

Exclusive Features 57 

Cost of Operation 58 

Knowledge About the Car Makers 58 

Inspections and Tests 59 

IX. HIGH LIGHTS ON AUTOMOBILE SALESMAN- 
SHIP - 61 

Steps of the Sale 61 

Time Your Calls 61 

Attitude of Salesman Towards Prospect 62 

Courtesy 63 

Get On a Common Plane with Prospect 63 

Introductory Remark 64 

Get Prospect to Say "Yes" 64 

Manner of Sales Talk 64 

Watch Prospect's Expression 65 

Making Appointments 65 

Stating the Proposition 66 

Study the Methods of Successful Attorneys 66 

Be Sure the Prospect Understands 66 

Appeal to All of the Senses 67 

Appeal to "You" 67 

Interruptions 68 

How to Close the Sale 6S 

Courage 68 

ix 



TABLE OE CONTENTS 

CHAPTER PA6B 

Persistence 69 

Salesmen Must Inspire Confidence 69 

Selling Women 70 

X. DEMONSTRATING THE CAR 72 

The Sales Points of the Car 72 

Service of Car 72 

Ease of Operation 73 

Comfortableness 73 

Safety 73 

Durability 73 

Not Easily Damaged 74 

Easily Kept in Condition 74 

Beauty and Style 74 

Cost of Operation 75 

Not All Customers Alike 75 

Car Saves Time 75 

Demonstrating the Car 76 

Precautions 76 

Demonstration During Stormy Weather 78 

Make the Most of Mishaps 78 

When to Talk Price 79 

How to Prove Sales Points 79 

XL OBJECTIONS AND HOW TO MEET THEM. ... 81 

Sizing Up the Objection 81 

Meet in Advance 81 

Don't Contradict 82 

Too Busy 82 

Price Too High 82 

Can't Afford It 83 

Objections to Technical Details 84 

XII. ADVERTISING TO SECURE BUSINESS 85 

Why Advertise 85 

What is Advertising 86 

How Much to Spend 86 

The Plan 86 



TABLE OF CONTENTS 

CHAPTER PAGE 

When to Advertise 87 

Mediums to Use 88 

Co-operation of all Departments 88 

Who Should Write Copy 90 

Letters 90 

Road Signs 91 

Manufacturers' Aids 91 

How to Cash In on National Advertising 93 

Free Publicity 94 

Automobile Shows 94 

XIII. MAKING MONEY FROM ACCESSORIES 99 

Automobile Dealer Logical Outlet for Accessories . . 99 

Accessory Business Pays 101 

Turn-over in Accessory Department 101 

Conditions of Success 102 

Good Buying 102 

Small Lots 103 

Few Houses 103 

Put Someone in Charge 103 

Display 104 

Capital Required 104 

Budget for Accessories 105 

What to Handle 105 

Overbuying 105 

Handle Good Merchandise 106 

Have Salesman Learn Merchandise 106 

Value of Reputation for Knowing "Oils" or "Tires" 107 

Illustration of Sales Knowledge on Oils 108 

Illustration of Sales Knowledge on Tires 109 

The Tire Without a Name 109 

Sales Points of Tires no 

Mileage in 

Care of Tires 112 

XIV. POLICIES 116 

Courtesy 116 

The Customer is Always Right 116 

xi 



TABLE OF CONTENTS 

CHAPTER PAGE 

Maintain Prices 117 

Cash or Credit 117 

Handling Used Cars 120 

Service 124 

Instruction for Car Owners 126 

XV. LEAKS AND WASTES IN THE AUTOMOBILE 

BUSINESS 128 

Water 128 

Soap 128 

Gasoline 128 

Oils 129 

Depreciation in Merchandise 129 

Accumulation of "Stickers" 129 

Electricity 130 

Forgetting to Charge Sales 130 

Too Much Desk Work 130 

Sales that Don't Stick 131 

XVI. AN ACCOUNTING SYSTEM THAT ACCOUNTS. 132 

Standard Accounting Systems 132 

More Information Needed 132 

Balance Sheet 132 

Profits and Expenses 134 

Department Record 134 

Stock Record 134 

Explanation of Terms 137 

Summary 143 



AUTOMOBILE SELLING 



AUTOMOBILE SELLING 

CHAPTER I 
OPPORTUNITY IN THE AUTOMOBILE BUSINESS 

The Growth of the industry. — The wonderful story of 
the growth of the automobile business is known in some 
part at least by every American. Within the memory of 
the young men of the present the automobile has come into 
use and from nothing has become one of the greatest and 
commonest conveniences in use by the American people. 

In twenty years the production of automobiles has gone 
up from a few hundred cars per year to a normal rate at 
present close to 2,000,000 cars a year. 

The accompanying table and diagram (see Figure 1) pre- 
sent the essential facts concerning this growth in a clear 
way both as to the total number of cars made and also as to 
the number of commercial vehicles. 

The total number of cars in use twenty years ago was 
only about 10,000; now there are over 6,000,000. 

We now can see that the automobile came into use at 
a very opportune time. The country, business, and the 
people were ready for it. It was a contrivance that needed 
only to be invented and demonstrated to secure for it an 
immediate market. 

The main trunk railway lines of the country had been 
built for a number of years. Transcontinental systems had 
been provided and lines between all important immediate 
points had been constructed where needed. Water trans- 



AUTOMOBILE SELLING 

(Figure i) AUTOMOBILE PRODUCTION IN U. S. 



Year 
Ending 
Dec. 
1899 
1903 
1904 
1905 
1906 
1907 
1908 
1909 
1910 
1911 
1912 
1913 
1914 
1915 
1916 
1917 
1918 
Estimates 
1919 
1920 



Total 


No. of 


No. of 


Total 


Cars 


Passenger 


Commercial 


Cars in 


Made 


Cars 


Vehicles 


Use 


3,700 






10,000 


11,000 


10,620 


348 




21,692 


20,261 


i,43i 


85,000 


25,000 


24,400 


600 




34,000 


32,900 


1,100 




44,000 


42,300 


1,700 




65,000 


61,900 


3,100 




126,593 


121,861 


4,725 


400,000 


187,000 


174,000 


13,000 


600,000 


210,000 


185,000 


25,000 


677,000 


378,000 


348,000 


30,000 


1.013,975 


485,000 






1,258,062 


569,054 


543,679 


25,375 


I.7II.339 


892,618 


818,618 


74,000 


2,445,644 


I,575,6i7 


1,485,617 


90,000 


3.541.738 


1,878,000 


1,718,000 


160,000 


4,941.276 


1,157,252 


974,606 


182,646 


6,000,000 Est. 


1,900,000 


1,650,000 


250,000 




2,200,000 


1,800,000 


400,000 



















































































































































































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OPPORTUNITY IN AUTOMOBILE BUSINESS 

portation had come to a stand-still. It may be that water 
carriage may be developed as the need for transporting" 
heavy goods grows, but the fact remains that water trans- 
portation had been diminishing rather than increasing for 
a number of years before the time of the automobile. Horse 
transportation had remained the same for hundreds of years 
with very little improvement. The good roads building 
movement had begun in this country some years before the 
invention of the automobile and was growing very rapidly 
in the 'cjo's when the first automobiles were built. This 
movement for good roads has been accelerated by the in- 
vention and development of automobiles but without fair 
roads to begin with the use of the automobile would have 
been practically an impossibility. 

If automobiles had been developed before railways, as 
has been stated by several who have studied this subject, it 
seems probable that the railways would not have been built 
to any such great extent as they were. There would cer- 
tainly be less railway mileage and a much greater volume 
of transportation by road and automobile. Since the com- 
ing of the automobile into common use there has grown up 
a competition between it and the railways that the railways 
themselves admit has hurt them. Though each has a defi- 
nite field in which it can perform the most economical 
service, the railway for long hauls, the automobile for 
short quick serviceable transportation, it seems quite cer- 
tain that railways have been built and used in some places 
where automobiles can more readily render the service 
needed and these railroads may therefore yet be driven 
out of business by the automobile. It is well known that 
railroad companies have taken steps to counteract the com- 
petition of automobiles both for passenger and freight 
purposes. This is a condition that will no doubt grow con- 
tinuously. 

Present demand for cars. — What the ultimate number 



AUTOMOBILE SELLING 

of automobiles in this country will be there is no present 
means of telling. It can only be stated that the automobile 
will eventually go into use wherever it can be used more 
effectively than railway transportation or a horse vehicle. 

In discussions concerning the possible number of auto- 
mobiles for which there may be a market in this country, 
it is customary to refer to the number of people, the aver- 
age wealth of the people, number of persons having stated 
incomes above $3,000 per year and so on. All of such 
bases for computing the possible market for automobiles 
are fallacious. 

Demand for automobiles no more arises from the num- 
ber of people who receive incomes above a certain point 
than the demand for box cars, for telephone poles, for tur- 
bine engines, or for dictating machines. No one thinks of 
stating the demand for these goods in per capita terms 
as automobile statistics are quoted. All of these items, 
including automobiles, are bought where needed and where 
their services will repay the purchaser above a similar 
expenditure made for other goods. 

What determines the demand for an automobile is the 
earnings to be derived from its use after it has been pur- 
chased. It is not what the automobile costs but what it 
will earn in money or service in proportion to what it costs 
that sells it to a consumer. If an automobile costs $1,000 
and will bring better results than a similar expenditure of 
$1,000 made in some other way, then the automobile will 
be bought and should be bought. 

The "saturation point" for automobiles depends, there- 
fore, not at all upon the present earnings of the masses 
of people, but rather upon what the earnings will be of 
those who have need for this form of transportation. The 
"saturation point", and there is undoubtedly some such 
point, at any given time, will not be reached until every 



OPPORTUNITY IN AUTOMOBILE BUSINESS 

place where the automobile can be profitably used will be 
filled. 

The uses of the automobile. — Ever since the automobile 
came into use there has been a strong mis-conception con- 
cerning its principal uses for which the automobile manu- 
facturers, their sales organizations and automobile dealers 
are mainly responsible. The automobile has been and still 
is being sold to the public as a means of pleasure and as 
a luxury instead of as an economic means of transportation 
for people and for goods. 

The pleasure uses are obvious. The winning sales-point 
to secure the order has in many cases been the appeal to 
the human instinctive love of the outdoors, the fun of 
riding and driving, the freedom of the open, and the fash- 
ionableness and exclusiveness of a car and so on. The ad- 
vertising of the automobile companies has pushed these ar- 
guments even farther than the salesmen have. 

As a matter of fact, judging from every bit of evidence 
available, only a very small proportion of the total num- 
ber of automobiles in use are in a direct sense "pleasure 
cars." 

Inquiries made by automobile companies, advertising 
agencies, periodicals and by the National Automobile 
Chamber of Commerce, all tell the same story, namely, that 
less than 30% of the total number of cars are used for 
pleasure purposes only. A great many passenger cars are, 
of course, used more or less for pleasure and for recre- 
ational purposes. But available evidence on the subject, 
while not sufficiently conclusive to serve more than as an 
indication, shows the surprisingly large number of cars 
serving economic uses, and the relatively small number 
devoted to pleasure uses. 

The term, "pleasure car," is a misnomer. Most auto- 
mobile manufacturers, as well as automobile associations 



AUTOMOBILE SELLING 

have recognized this fact now and are trying to have the 
word "passenger car" substituted for "pleasure car." 

Why the industry will continue to grow. — Opportunity 
in the automobile business, the same as in every other well 
established line, depends upon the basic business condi- 
tions of the country, and of the community in which the 
business is to be located. If the production of raw mate- 
rials is forging ahead, if the volume of trade is high, if 
labor conditions are sound, it is certain that there will be 
need for automobiles. 

Agriculture, mining and lumbering is growing year by 
year in an almost uninterrupted upward direction. The 
population of this country and of the world is increas- 
ing continuously and their wants must be satisfied. Not 
only that but their standards of wants are rising steadily. 
They must have the products of the soil, the mines and the 
forests on which to live. Production must continue. This 
is the trend of evolution. It is evolution itself. 

The volume of business transacted in this country has 
grown in a remarkable way during the entire period in 
which the automobile business has shown such remarkable 
growth. In fact there is probably a closer connection be- 
tween the number of automobiles in use and the volume of 
business than there is between the number of automobiles 
and the population. In 1898 the volume of business was 
less than $10,000,000,000; in 1916 it passed $20,000,000,- 
000; in 1910 it passed $30,000,000,000; by 1916 it reached 
$50,000,000,000 and in 191 8 it passed $70,000,000,000. 

This growth in business, stated in dollars, represents back 
of it tremendous activity of all kinds. But in all business 
there is need for transportation service. The greater the 
business the greater the need for transportation of all kinds. 
It is this demand for transportation growing out of business 
that has made the market for the millions of automobiles. 

The prospect for the future of the automobile industry 

6 



OPPORTUNITY IN AUTOMOBILE BUSINESS 

is bright. Business volume will grow and with it will grow 
the demand for motor transportation. When business 
ceases to grow we shall have reached the point when the 
demand for automobiles will remain stationary. 

Whatever this large general public demand for automo- 
biles may amount to in millions of cars per year, it must 
be borne in mind that this demand is made up of small 
demands, a demand in each locality in the country. If 
2,000,000 cars are wanted by the United States, this means 
that a certain number of cars will be wanted in every 
county in the United States, and the only point in presenting 
general statistics is to indicate that there is an opportunity 
for the automobile dealer in his own community propor- 
tional to the large opportunity of the entire country. 

Greater skill in selling will command premium. — The 
automobile business is not now an unworked field. Auto- 
mobiles have been sold by dealers for twenty years or more. 
The automobile is no longer a new device, unknown to the 
people. It is a staple product, comparable to food, cloth- 
ing, hardware, building materials, and so on. Henceforth 
it must take its place among these necessities in the national 
system of distribution. 

In the early days of automobile selling, automobile deal- 
ers were largely recruited from such classes as bicycle men, 
sportsmen, rich men's sons who had nothing else to do, 
speculators, and so on. With few exceptions, good business 
management among automobile dealers was a rarity. But 
the market for automobiles was so intense that a large num- 
ber of fortunes were made even with the poorest methods. 
It is not now possible to embark in the automobile business 
with such certainty of success that all principles of good 
business may be thrown to the wind. Competition has 
grown keener but in comparisons with other and older lines 
of business this competition has not become such a set and 
fixed thing yet. Formerly nearly all men who went into the 



AUTOMOBILE SELLING 

automobile business who used any judgment at all in their 
business stood a fair chance of winning. Success has now 
moved up several notches and the more reckless and poorer 
types of business men have fewer chances of succeeding 
than formerly. 

There is a wide open door to success in the automobile 
business to concerns with good management but not to 
others. The old days are forever gone. Success is now 
possible only for those who know. 

In the automobile business, as in every other, experience 
is the basis of practical knowledge, and from practical 
knowledge progress can be planned. There are dealers 
who do not profit from their own experience. They soon 
drop out. There are others who learn lessons from their 
own experience but fail to profit from the experience of 
others. These hold their places in the business, but their 
struggle is constantly hard. Finally there is the class of 
dealer who learns from others as well as from their own 
business. The future of the business belongs to this group. 
It is to this group that this book is presented. 

Observation of the methods of good and poor dealers 
shows that the reasons for the difference lie largely in the 
methods. There is the widest variation. By change in 
methods many concerns have changed from failure or 
mediocre success to positive progress. 

This book is a compilation of the methods actually used 
by successful automobile dealers. It is presented with the 
view of helping those dealers who will help themselves. 



CHAPTER II 
A PLACE OF BUSINESS THAT WILL HELP 

Locality. — Let us now assume that the reader of this 
book has decided to go into the automobile business. The 
next point for consideration will be the selection of a loca- 
tion. There is one measure only governing the selection of 
a business location, and that is its help in producing a 
profitable business. Acessibility to people, nearness to pros- 
pective customers is what counts. The number of people 
in a community have something to do with the possibility 
of making sales, but, as we saw in the first chapter, not 
nearly so much as the existing needs for motor transporta- 
tion — backed by the capital or credit to pay for this trans- 
portation. 

The fundamental questions that must be answered with 
reference to the value of any location are therefore those 
that have to do with the possible number of prospects, those 
who do not have cars but who should have them. If there 
are a number of families in the community of ample means 
but without cars, that indicates a prospective field of busi- 
ness. If there are business men who might profitably use 
cars in their business, if there are farmers, gardeners, con- 
tractors, or mechanics in the community whose businesses 
would be aided by the use of cars, these will constitute ex- 
cellent prospects for the automobile business. 

In a later chapter we shall consider in detail who the 
prospects for automobiles are. It need only be pointed out 
here that good business judgment must be used on this 



AUTOMOBILE SELLING 

point before establishing an automobile business in any 
community. 

There are places so small that every prospect can be 
fully canvassed and sold within a limited time. If a man 
goes into the automobile business with the idea of estab- 
lishing a permanent business he must consider not only 
what his outlook for returns will be during the first year, 
but also in the years following. Due regard must be given 
to the amount of business there is likely to be in replacing 
old cars as well as the possibility of making new sales to 
new people. There is danger in having too limited a terri- 
tory. 

On the other hand one of the commonest mistakes made 
by those going into the automobile business is to attempt to 
cover too much territory. For a dealer trying to cover 
too much territory there is greater danger of overlooking 
prospects than there is of over-estimating the number. 
There are many profitable automobile businesses located in 
very small communities and as the use for the automobile 
develops it seems highly probable that the time will come 
when automobiles will be sold in just as many small places 
as wagons and buggies were formerly sold in. 

What car. — The next step in establishing an automobile 
business is deciding on what automobile to handle. Here 
local demand must govern fully. The man who proposes to 
go into the business must decide in advance what car or 
cars should be owned by the people of the community. 
That is to say, he must sell himself fully on the car that 
should be used by a large number of the people. 

There is no car that can be sold to everybody. If only 
one car is to be handled great care should be exercised in 
selecting a car that can be sold to the greatest number of 
people within the community. It may be advantageous in 
many cases for the dealer to act as agent for two or three 
cars. Experience has shown, however, that a dealer makes 

10 



A PLACE OF BUSINESS THAT WILL HELP 

most money on selling and pushing some one or two most 
popular cars. Too many cars complicate the business and 
confuse customers and make it more difficult to sell, and 
actually results in losing business rather than gaining it. 

If more than one car is to be handled, each should be 
selected with reference to specific groups of people in the 
community. For example, if a medium priced car is se- 
lected with which to try to reach the largest group of 
people in the community who want cars, then it may be 
advisable to select a high priced car to meet the needs of 
the people of greater wealth or who desire to obtain a 
car of greater excellence than the first. Or, it may be 
desirable to combine with the medium priced car one of 
low price. It is rarely ever desirable to combine a high 
priced car with a low priced car in the same establishment. 
It is better to work from medium priced cars up or down 
than to try to work on both extremes. 

A good car salesman is one who doesn't know that there 
is any prospect for a car that he can't sell. It isn't a good 
thing for a dealer to advertise this fact to his salesmen, 
but it is probably impossible to sell all prospective car 
owners in the community any one car no matter what kind 
of a car it is. The important thing is to have the agency 
for the car that will fit the needs of the most people in 
the community. If the dealer can satisfy himself upon 
this point in advance, he has gone far towards insuring 
his success in selling after the business has been started. 

Having determined the car or class of cars suitable for 
his community the dealer may next turn his study to the 
manufacturers of such cars. His special attention needs 
to be directed to such points as: their reputation, finan- 
cial stability, treatment of distributors and dealers, treat- 
ment of customers who use their cars, service policies, 
advertising plans for the future, and assistance given in 
the sale of cars by dealers. It is highly advisable to visit 



AUTOMOBILE SELLING 

the factories and talk with the officials of the company 
whose cars are under consideration. It is likewise advis- 
able to see some of their dealers in their places of business, 
and to get from them their feeling towards the companies. 

As the selection of the car to be handled is a highly 
important thing, it is undesirable to change from handling 
one car to another. Such changes mean considerable loss 
to the dealer in prestige, good-will, and in experience. 
Therefore determining whether to take a certain car agency 
or not is extremely important. 

Location in community. — Having decided on a com- 
munity in which to establish an automobile business, and 
the car which is to be handled in that community, the next 
step is to select a suitable location within that community. 
Here, as in determining the community in which to estab- 
lish the business, the first thought must be of what the pos- 
sibilities will be of the location helping to secure business. 
The value of a retail location is based entirely upon its 
convenience to prospective consumers. This is as true for 
automobiles as it is for cigars. If there were a chain store 
system in the automobile selling business as there is in the 
tobacco line, we should find the automobile chain store 
system using precisely the same methods of determining 
suitable location as the tobacco chains do. It would count 
the number of passers by and consider the character of 
those passers by, as to possible purchasing power, and so 
on. 

It may be urged that those who have made up their minds 
to buy automobiles will as readily go to a side street as to 
the most prominent location in town. This is true for 
those who have already made up their minds. But the 
automobile business grows by making sales to those who 
have not yet made up their minds, and whose education 
comes from seeing automobiles in use, seeing them offered 
for sale, reading advertising about them, and by solicita- 

12 



A PLACE OF BUSINESS THAT WILL HELP 

tion. The exhibition of automobiles for sale acts as a con- 
stant suggestion to people who pass, a suggestion which 
may finally grow into a desire and decision to buy. Loca- 
tion on a side street minimizes the chances of furthering 
this education of prospects for the automobile market. An 
automobile business devoted entirely to selling automobiles 
and not including a garage, repair shop, or service station 
can use and should have as good a location as a cigar store, 
drug store, dry goods store, or even a bank. Rentals come 
high in such locations but the extra volume of business 
that can usually be secured in such locations more than 
makes up the difference in rental. There is no location in 
the average town too good for the automobile business. 

How the location helps. — If a place of business is solely 
for the sale of automobiles, then the better the location, all 
things considered, the more sales will be made. It may not 
be profitable to run a garage on the most expensive corner 
in the city, but experience has shown that it does pay to 
have just such a location for the automobile sales room. 
The dealer must decide for himself which is to be his 
more important business, that of running a garage and 
repair shop, or selling automobiles. 

Thought must also be given to the surroundings. Build- 
ings near by help or hurt the business. No matter how 
attractive the automobile store may be, if surrounded by 
old broken down buildings or by buildings used for pur- 
poses that do not appeal to the automobile buying public, 
then it will be harder to sell automobiles. 

In some communities it has been thought highly profit- 
able to locate near other automobile dealers. Consequently 
there are in many cities automobile rows. There are ad- 
vantages for this system of location. People desiring cars 
can readily locate the car dealers. People who come to 
see one car will find it convenient to drop into the places 
of other dealers and see other cars at the same time. Pros- 

13 



AUTOMOBILE SELLING 

pects who come to see some car without the intention of 
seeing any other dealer, may have their attentions attracted 
to other cars on the way to their dealer with the result 
of changing their minds. Thus in automobile rows there 
is chance of losing some trade but also of gaining some 
from competitors if the car that the dealer represents is 
one that is obviously suited to the needs of the people who 
may buy. 

There are some dealers who claim that taking a better 
location is the same thing as spending money for adver- 
tising. They say that a concern located on a side street 
must spend more money to secure a certain volume of 
business than a similar concern located on a main street. 
It may not be good business to cut down on advertising 
when taking a better location. In fact, it may be better 
to spend more for advertising when located well, since the 
better location, like a good piece of land, may stand much 
more intensive cultivation than a poor location. 

A retail store location is simply an opportunity to go to 
work. A good location is one that can be worked more 
thoroughly than a poor one. The shrewdest and braini- 
est retail automobile dealers invariably try to place their 
stores in the best location. 

Presence of competition should of course be considered. 
But the fact that there are other automobile dealers in 
the community is no reason why a new establishment should 
not be well started. If the new concern can sell a car 
not sold by others, if the new concern can supply a want 
more satisfactorily and more cheaply than any of the older 
concerns, then there are excellent reasons for the estab- 
lishment of the new concern, and the chances of its success 
are good. 



14 



CHAPTER III 
BUYING A BUSINESS VERSUS STARTING A NEW ONE 

How to analyze an old business. — An automobile dealer 
on going into the business is likely to be confronted by the 
problem of whether to buy an old business already estab- 
lished or to start a new business in a new location. If an 
old business is offered, points such as the following should 
receive careful consideration. 

What has been the history of the older business and its 
location? Has it passed from hand to hand? Have its 
former owners or managers succeeded or not? What has 
been the reason for the changes in each case? What is 
the reason for the present owner wanting to sell? 

It is usually a difficult thing to take over an old business 
and make a success of it after it has gone through a series of 
failures. The location should not be blamed for failure in 
every case. Failures may be due to personal reasons or sev- 
eral other causes. But if the previous failures were due to 
faults of the manager rather than of the location it is easy to 
conclude that with proper management, one could make the 
location a successful business place. This does not always 
follow. People of the community are likely to look upon 
the place from force of habit as a failure and, therefore, 
the difficulty of making a success out of it is multiplied. 

Careful investigation needs to be made to determine the 
past history of a concern offered for sale and this investi- 
gation can best be made by talking not only with the owner 
who wishes to sell out but with other business men of the 

15 



AUTOMOBILE SELLING 

community, such as the owner's former customers, the near 
by business concerns, the banker, real estate men, and any 
others who may have an intelligent opinion of the circum- 
stances. . 

The Inventory. — In offering an old place for sale, there 
are usually included a certain number of cars generally sec- 
ond handed, stocks of accessories, tools and supplies of vari- 
ous kinds, outstanding obligations due the concern, obliga- 
tions of the concern to others, and finally good-will. 

It is generally very dangerous to buy any sort of a re- 
tail establishment without a careful inventory of every 
item making up value in the place. And in taking this 
physical inventory, men of experience whose judg- 
ment can be trusted should be employed. Valuations should 
be fixed not at what goods will sell for, but at fig- 
ures that will permit the making of a profit when they are 
sold. In setting valuations care must be exercised to deter- 
mine the salability of the goods. Certain lines may have 
a general marketability but in no demand in the local mar- 
ket. The appearance of the merchandise in stock is an im- 
portant consideration. It may require considerable labor 
and expense to brighten it up. Thought must be given to 
what it will cost to put the merchandise in shape to sell. In- 
trinsic values, general marketability and so on have no place 
in making up inventory. Goods are worth only what they 
will bring less the cost of selling them. 

Overstocks of various items are also factors that must 
be considered. The net value of any stock is what can actu- 
ally be obtained for it. Dead stock on the shelves is of no 
value and should be so considered in this connection. 

Repair equipment, show cases, shelving and so on, should 
be inventoried at what they would probably bring in an 
open market with competition both of buyers and of sellers. 

The same care needs to be exercised in taking over debts 
due the concern. As a rule old automobile debts are as 

16 



BUYING A BUSINESS vs. STARTING A NEW ONE 

bad a class of retail debts as any in existence. For inven- 
tory purposes it may be well to classify such outstanding 
debts as may be offered for sale as good, doubtful, and 
bad, and value them accordingly. 

Finally the prospective purchaser needs to satisfy him- 
self regarding the real ownership of the property that is 
being offered to him. Are the goods in stock consignments 
from manufacturers or are they really owned? Are there 
chattel mortgages outstanding against any part of the stock 
or the plant as a whole? Are there outstanding indebted- 
nesses that are likely to show up later? Are there unpaid 
taxes or assessments? When these points have been satis- 
factorily covered, the purchase should be closed by a bill 
of sale given to the purchaser, guaranteeing the conditions 
as set forth in the verbal understanding. 

Good-will. — One of the items usually mentioned by the 
man who desires to v sell, that may be highly valuable in an 
old business is good-will. Good-will, though intangible, is of 
real value providing any exists. Good-will consists essen- 
tially in a favorable attitude of mind among the people in 
the community in which the business is located towards that 
business. The good-will may inhere in the person running 
the business, in which case, if he leaves it, he is likely to 
take it with him. If he starts into business in the vicinity 
he gets the value from it. It may inhere in the merchan- 
dise. For example, the agency of a well known car is likely 
to prove of value because of the public good-will for that 
car. The public knows the car, has faith in it and buys it 
readily. A change from that car to some other car means 
the losing of the good-will of that car. Good-will may 
inhere in the location. Satisfactory service given to cus- 
tomers over a period of years usually results in people 
enjoying coming to trade in that place. This is the item 
of good-will of valuable consideration in this connection. 

Good-will inherent in a person is valueless to a purchaser 

*7 



AUTOMOBILE SELLING 

of this business unless that person remains with the pur- 
chaser in the business. Every automobile dealer should 
assure himself that he has the support of good-will inher- 
ent in merchandise by having the agency for at least one 
well known car, and if accessories are handled, there should 
be included in the stock the lines well known to the trade. 
The more lines of well known products that a dealer carries 
the more good-will of this character he will have at his com- 
mand. These are valuable items that should not be over- 
looked. 

If customers think of the place rather than of the person 
or the merchandise when they want car or accessories, 
then the place possesses good-will that is worth paying for. 
The chief reasons for buying an old business rather than 
starting a new one are, to get a place planned for the 
work, to get a complete equipment for less than the cost 
of buying a new outfit, and, most important of all, to secure 
any good-will that may have accumulated for the business. 

Ill-will. — In consideration of good-will, it should not be 
overlooked that it is fully as possible for a concern to have 
ill-will as good-will. Investigation of the concern offered 
for sale should cover this point as well. One enemy of the 
place discounts at least 10 friends. If the concern has had 
a reputation of unfair dealing, of poor service, or any 
other undesirable quality, it has an ill-will in the community 
that must be reckoned with. Ill-will counterbalances and 
neutralizes sales effort. Therefore, ill-will makes it harder 
to sell while good-will makes it easier to sell. Better start 
a new business from the ground up, with all its difficulties, 
than try to get business against the opposition of a well 
developed ill-will. 



18 



CHAPTER IV 
FITTING YOUR PLACE OF BUSINESS TO HELP MAKE SALES 

One of the most effective forms of dealer strategy is to 
fit your place of business so that it will help to sell your 
lines. There are stores where the lay-out and equipment 
actually hinder or at least make it harder to sell. There are 
other places, and many of them, where the place of business 
neither helps nor hurts sales. In this chapter we shall sug- 
gest methods of getting the place of business to go to work 
for you. 

Building. — An automobile dealer needs the kind of a 
building that will suggest the things that his salesmen preach 
to prospects. One of the chief sales points urged by them 
is the use of the car as a business economy and as a means 
of increased efficiency. In other words the salesmen are 
missionaries of better business methods involving the use 
of the automobile. The automobile dealer's place of busi- 
ness should express in every detail up-to-date business 
efficiency. The building itself should be a modern looking, 
business-like looking structure. 

Most people who have never owned automobiles before 
are likely to be in the same state of mind about a car pur- 
chase as they would be in anticipation of any event of life- 
time significance. Automobiles have changed in appear- 
ance and in mechanism tremendously during the last ten 
years. The average purchaser is likely to think that these 
changes will continue. Consequently when he buys he 
wants to be assured that what he buys is at least up-to-date. 

19 



AUTOMOBILE SELLING 

A place of business can help strongly to suggest the up-to- 
dateness of the car line handled. A customer instinctively 
and quite properly nine times out of ten thinks that the 
merchandise whether it be cars or mouse traps handled by 
an old looking place of business, dusty, shop worn, and so 
on, is out-of-date. 

Before going on to point out details that should be con- 
sidered the reader should give his consideration of the 
need for fire proof construction. The frequency of fires 
in garages and automobile dealers' places of business, the 
constant hazard in connection with the handling of gaso- 
line proves that anything but the best type of fire proof 
construction should be avoided if possible. Furthermore 
the building should be equipped with proper means for ex- 
tinguishing any fires started. 

Architecture. — One of the most important architectural 
features of an automobile dealer's place of business is the 
entrance. 

Trite though the suggestion may seem, the entrance 
should be planned so that it may be easy for people to get 
in. The doors should swing easily and noiselessly. Steps 
leading up or down to the door are objectionable. They 
add to the difficulty of getting in, they destroy the entrance 
attractiveness, they increase the salesman's work after the 
customer does come in. 

Attention needs to be given to the proper location of 
the gas pump, if one is placed outside of the building, and 
that is the best place for it. The best way to handle gaso- 
line is undoubtedly by means of an underground tank with 
connections leading to one pump in the garage and another 
outside on the sidewalk near the curb. If there is a gar- 
age as a part of the plant, the pump should not be located 
so that cars stopping near it will interfere with free traffic 
into and out of the garage. Yet it should be placed as near 



FITTING PLACE OF BUSINESS TO MAKE SALES 

the entrance as possible so as to save the time of employees 
who are to serve customers from it. 

Free air is a service that will draw motorists. It would 
seem a worth while investment for every automobile dealer 
to provide air hose and connections to a power pump so as 
to be able to supply air for tires on the outside. 

Windows. — During the last dozen years window displays 
have come to be recognized as of very great value in prac- 
tically all lines of trade dealing with the public. It is a 
form of advertising that is extremely effective when prop- 
erly used. The automobile dealer should be sure to use his 
windows with the idea of getting value from them. That 
is what they are for. 

The first point that an automobile or accessory dealer 
should learn is that any window display is better than no 
display. Show the goods. Secondly, the better looking, 
and the better planned a display is, the better the results 
that may be secured. 

To secure the best displays possible it is necessary to use 
backgrounds. Without backgrounds it is usually possible 
for passers-by to see the entire interior of the store. If 
there are not people moving about in the store, the impres- 
sion the people on the outside gain is that the place is 
vacant. And the last impression in the world a live auto- 
mobile dealer wishes his prospective customers to get in 
their minds is that his place is a vacant place. 

Window displays. — A mistake frequently made by auto- 
mobile dealers and by many other classes of dealers as well, 
is to place the office, the desks of the salesmen, and of the 
manager of the business in the front, directly in the win- 
dow. This is a mistake from every point of view. In the 
first place the use of the window is to convey to the public 
information about the merchandise that the concern has 
for sale. The office furniture used in an automobile busi- 
ness is not for sale and should therefore not be placed in 

21 



AUTOMOBILE SELLING 

the best display space. A visit to a number of automobile 
dealers' places of business will show that where desks are 
placed in or near the window the occupants of those desks 
are usually absent giving the impression of an office equip- 
ment display with nothing going on. 

The merchandise that the concern has to sell is what 
should go into the window. Any other use of the window 
space is waste. 

Principles of effective display. — The characteristics of 
a good window display are, first, that it must have meaning. 
Dumping a lot of merchandise together in a window may 
be better than nothing but it certainly does not get the best 
results. The display should tell a story. If an automobile 
is displayed in the window, that in itself is a simple fact. 
But if special attention is called to the engine in that auto- 
mobile, or to the upholstery, to the ease of control, or any 
one of the many other features of a good automobile, this is 
very much better. However, it is not wise to try to bring 
out all of these points in a single display. Better have one 
point brought out strongly at one time, and another point 
brought out at another time, and so on. 

A second point to observe in the making of an effective 
window display is that it should be orderly and simple. 
It should be easy for the eye of the passer-by to grasp the 
meaning of the display and to see what it is about. Several 
articles can be placed effectively in a window display pro- 
vided that they are arranged in some orderly fashion. 
Common sense is the good rule to apply. Many valuable 
lessons on how to make orderly, simple window displays 
can be gained from a study of the merchandising methods 
of older concerns such as chain drug stores, chain cigar 
stores, grocery stores and five and ten cent stores. 

The automobile and accessory business involves no new 
principle of window display. The merchandise is merely 
different. 

22 



FITTING PLACE OF BUSINESS TO MAKE SALES 

Next, the window display should be planned to attract 
attention. As an aid in this direction, moving objects, such 
as a moving engine, a stripped chassis showing the trans- 
mission in operation run by a small motor, or some part of 
the car such as the carburetor, the electrical equipment, the 
upholstery materials, or any other detail, all properly la- 
beled with cards giving the name of the part and its use, 
are very effective. Placing an automobile in the window 
without explanation is, as we have indicated, perhaps better 
than no display at all, but it does not hold the attention very 
long. When cards or arrows are used pointing to some par- 
ticular feature, you make passers-by think more about what 
they see. 

Displays of accessories can be made most interesting 
and valuable. A card-board model can be constructed to 
show how the spark plug functions, using an actual spark 
plug in the appropriate place. Tires can be exhibited in a 
variety of ways. An effective demonstration frequently 
used is to hang a tube from the ceiling and suspend by 
means of it some heavy weight such as a motor cycle. Tire 
repair material can be demonstrated splendidly by showing 
repairs before and after treatment. Any one in the. business 
and who knows his merchandise can think up dozens of 
effective ways of demonstrating sales points by means of 
window displays. 

Most successful automobile dealers believe in featuring 
the prices of the merchandise that they show in their win- 
dows, and they claim that this is a valuable part of the dis- 
play whether prices are lower than usual or not. The pass- 
er-by on seeing an article may not be attracted sufficiently 
to come in to buy unless at the same time seeing the price 
and recognizing that the price is within his reach or in his 
view a reasonable one. 

One effective and simple form of window display is a 

23 



AUTOMOBILE SELLING 

bulletin-board calling attention to used cars, together with 
their prices. 

Many manufacturers of accessories and automobile parts 
are beginning to recognize the value of window displays in 
dealers' places of business and are providing materials out 
of which very attractive displays can be built by the dealers. 
These are worth while investigating. 

Displays should be most frequent in lines that sell best. 
That is, a dealer should push his sales by displays and other- 
wise along lines of least resistance. At the same time the 
dealer should not give his window entirely to the easy 
moving merchandise. Prospective customers should also 
have an opportunity to see new and unusual goods that 
the dealer may stock from time to time for his trade. 

An important feature of successful window displays is 
good lighting. The dealer will do well to purchase regular 
display window lighting fixtures that will properly light 
up the display and yet throw no direct beams of light into 
the eyes of the passers-by. Considerable attention should 
be given to the lighting effect and the placing of merchan- 
dise in the window in such groupings as will get the best 
effect from the light. If a store is located in or near the 
center of the town the possibilities of getting value out of 
the displays during the evening should not be overlooked. 
Even if the automobile dealer's place of business is closed 
a well lighted display in the window will continue its good 
work. As some one has said, it works while you sleep. 
There are many people who will spend more time at a dis- 
play window carefully examining the merchandise shown 
there at such times than at any other. 

Store arrangement. — The arrangement of the store is 
another important consideration. What the arrangement 
shall be will depend, of course, upon the lines of business 
handled. It is assumed here, for purposes of illustration, 
that the dealer's place of business includes the sale of motor 

24 



FITTING PLACE OF BUSINESS TO MAKE SALES 

cars, the sale of gas, oil, accessories and tires, a garage 
and a repair shop. This makes the best combination of 
departments in most towns. In some places a livery or taxi 
service may be profitably added. Dead storage for cars not 
in use is a frequent business feature. Then there are many 
automobile dealers who also handle trucks, agricultural im- 
plements, farm lighting plants, and so on. 

The sale of cars will require a show and sales room used 
solely for that purpose. The room should be a cheery one, 
bright, clean and quiet. Gas, oil, accessories and tires 
should, if possible, have another room apart from the car 
sales room. Both of these sales rooms should be located at 
the front, easily accessible from the street. The garage may 
occupy quarters farther back, and the shops should be lo- 
cated as far as possible from the sales rooms. 

Furniture. — The car sales room should not only be well 
lighted and kept in good condition. It should be equipped 
with the proper furnishings. A good many automobile 
dealers waste considerable money on the furniture for their 
sales room not at all in keeping with the purposes of the 
place. When equipping it they seem to forget that its chief 
and sole purpose is to be a place in which to sell auto- 
mobiles rather than to display furniture. Anything in the 
sales room that does not help sell cars is out of place. Chairs 
and desks are probably needed. But upholstered easy 
chairs, sentimental pictures on the walls, potted plants in 
the window, attract attention to themselves and away from 
the cars. Scenery as such is in most cases, entirely out of 
place. The ideal equipment of a car sales room includes 
the automobile that is to be demonstrated, a few pictures 
of the factory where the car is made and of factories where 
various parts of the car are made, parts of the car fitted 
up for demonstration, a black board or chart with a supply 
of crayon for the salesmen's use and a few plain but com- 
fortable chairs for the use of prospects when they are not 

25 



AUTOMOBILE SELLING 

seated in the car and, lastly, the desk at which the prospects 
may be seated to sign the orders. The salesroom should be 
something like a school room where the prospective cus- 
tomer can be taught all that is necessary to make him real- 
ize his need for the car. The salesman is the teacher. 

The place of business should be equipped with rest rooms 
for men and women, adjoining the car sales room. A tele- 
phone booth for the use of prospective customers would be 
a convenience. A rack or table on which there are placed 
in good order a few well selected interesting magazines 
which may be looked over by the prospective customer 
while waiting for the salesman who may be engaged in talk- 
ing to other customers is a good idea. Drinking water 
should be accessible. The best arrangement is a drinking 
fountain. It is absolutely sanitary as well as attractive 
in appearance. 

Next to the automobile sales room, but if possible not 
in the automobile sales room, there should be the store 
where the accessories and tires are sold. As a rule it is 
not a good plan to exhibit a line of accessories to the per- 
son who is thinking of buying a car. It may suggest that 
the purchase price of the car is but the beginning of outlay 
on the car. This may make it harder to sell certain pros- 
pects. 

Planning for displays. — However that may be, goods 
must be displayed in order to be sold, particularly such 
goods as accessories. Part of the available window display 
space should be used continuously for accessories. But 
there should also be attractive displays of accessories within 
the store, in show cases, on tables, and, if possible, in the 
garage. Some arrangement should be provided to secure 
display space where drivers who enter and leave the garage 
may see seasonable goods that they may need. A sample 
case erected near the entrance or at the side of the en- 

26 



FITTING PLACE OF BUSINESS TO MAKE SALES 

trance where every man entering can see it, containing such 
goods, has been used effectively in several places. 

In the planning of automobile dealers' establishments the 
accessory store is frequently located at the side of the 
entrance into the garage. A glass display space opening 
into the entrance way so that displays may be made here 
to catch the eye of automobilists entering or leaving the 
garage works very well. 

Too much care cannot be given to the handling of acces- 
sories and supplies in the way of keeping them clean and 
fresh looking. It is usually a better plan to have samples or 
even stock displayed in such a way as to permit prospective 
customers to handle them than to keep them on shelves or 
back in show cases where they cannot be reached. It is also 
the experience of many successful concerns that it is best to 
have the prices at which the goods are to be sold plainly 
marked on every article. The prospect who has the oppor- 
tunity to pick up an accessory, examine it of his own ac- 
cord and note its price, frequently sells himself. After all 
this is the best form of selling. 

Bargain department. — Even with the best of judgment 
in buying a dealer is likely to accumulate stock with slow 
moving qualities. In order to get rid of such goods some 
accessory stores have adopted the plan of having a bar- 
gain department, in some cases merely an open counter 
upon which the stock to be sold at less than regular prices 
is placed. The customers are instructed by the signs above 
these tables to look over whatever may be there and the 
favorable prices marked on each article secures sales that 
otherwise might not be made. In this way dead stock may 
be moved and total loss averted. 

Ventilation. — Good air or good ventilation is an abso- 
lute necessity to a modern automobile store. The garage and 
shop odors are unpleasant to many people and tend to drive 
them away or to make them uncomfortable. Lack of fresh 

27 



AUTOMOBILE SELLING 

air reduces the efficiency of the employees more than is 
commonly understood. It is more difficult to sell the cus- 
tomer in a room that is close and badly ventilated than it 
is in a well aired room. This is not theory but actual fact 
observed by many dealers. 

Order. — One of the first essentials of a successful estab- 
lishment is order. A place for everything and everything 
in its place. Commonly in some places the manager of the 
establishment takes an occasional fit to have things put in 
place and in order and then allows several weeks to pass 
by without much attention to this matter. This is wrong. 
Order should be a matter insisted upon at all times and 
should become a habit rather than an occasional occurrence. 

Cleanliness. — The importance of cleanliness in automo- 
bile dealers' places of business cannot be overemphasized. 
The outside of the building itself should be kept bright and 
clean looking. We have already indicated that it should 
be kept looking as if it were new. It must be washed or 
repainted as frequently as necessary. 

Display windows need frequent washing and wiping. The 
gathering of dust and dirt in windows has a way of depre- 
ciating the value of stock. It not only actually tarnishes 
and destroys the goods but also gives customers the wrong 
sort of impression. There is probably no expense that pays 
back such good returns as that in keeping displays of mer- 
chandise in first class order. The floors and furnishings 
should be kept spotlessly clean. It may be necessary to 
wash the floors daily. 

Care of cars. — Nothing further need be said here of the 
necessity of keeping the automobile sample models in the 
cleanest and brightest possible condition. Great care should 
be taken to remove finger marks, tarnish from nickel trim- 
mings, and dust. Prospective customers cannot be greatly 
impressed if shown a car or line of accessories covered with 
dust making it possible to write one's name in it. 

28 



FITTING PLACE OF BUSINESS TO MAKE SALES 

The dealer wants his prospective customer to appreciate 
his merchandise sufficiently to want to own it. One of the 
best methods of securing this appreciation is by showing 
precisely that sort of appreciation himself by handling it 
carefully, by keeping it clean and in good order, by treating 
it in an appreciative manner in every possible way. How 
can a dealer expect a customer to appreciate or want to buy 
an article which he himself shows no care for in any way? 

Conveniences. — It may be possible to save a great deal 
of labor and time about a garage by the use of convenient 
fixtures. For example, if convenient and sufficient lighting 
arrangements are provided where cars are washed, it is 
possible to secure a better finish than without the light. 
Clean cloths are needed and by the use of an ordinary 
clothes wringer one can wash and wring the cloths and 
chamois skins used in wiping the automobiles. 

The nuisance of water on the garage floor from washing 
the cars can be eliminated by having a pit cut in the floor 
with several drains leading from it. This pit should be 
covered by two by four timbers, arranged with spaces be- 
tween, so as to permit the water to flow easily down into 
the pit. This is usually a better plan than to have a floor 
sloping towards a center where the water from washing 
may flow. 

Several garages have found that a better way to clean 
the upholstery of cars than by hand with whisk brooms is 
by means of an electric vacuum cleaner such as is used in 
households. 

Repairs can be facilitated greatly if in planning the build- 
ing a working pit is constructed in the floor over which the 
car may be run permitting the workman to stand under- 
neath the car instead of having to lie on his back on the 
floor when working under the car. 



29 



CHAPTER V 
WHO YOUR PROSPECTS ARE AND HOW TO FIND THEM 

It is not many years ago in the automobile business since 
customers literally stood at dealers' doors in waiting lines 
with cash in hand demanding automobiles. Manufacturers 
were unable to supply a sufficient number of cars to satisfy 
the demand. Dealers bought cars from manufacturers in 
those days on the manufacturers' own terms. The demand 
from consumers of automobiles was spontaneous. 

Automobiles, like other goods, must be sold. — Much of 
the insistence for automboiles such as we have described 
above has probably forever passed by. Instead of cus- 
tomers buying automobiles they will henceforth have to be 
sold automobiles. In other words, the same rule holds as in 
all other lines, such as pianos, sewing machines, washing 
machines, and all of the great staples in the food and 
clothing lines in which competition enters; the dealer must 
exercise effort to make sales rather than to depend entirely 
upon the consumer to come and take the merchandise away 
from him. 

There are still probably opportunities to sell people who 
have already made up their minds to buy cars, and who will 
come to the dealer's place of business, but in most places the 
dealer can consider himself very fortunate with respect to 
this spontaneous demand if 10% of his sales are made to 
customers who come into his place of business looking for 
his car. 

This means then that the automobile dealer must do what 

30 



WHO PROSPECTS ARE AND HOW TO FIND THEM 

every other specialist does, he must work out systematic 
methods of finding prospects for his cars and accessories 
and must solicit them scientifically. If prospective cus- 
tomers will not come to the dealer's place of business, the 
dealer must go out and find prospective customers. 

Nearly everybody is at some time- a prospect. — One 
method of general application employed by certain auto- 
mobile dealers is to solicit everybody in his community — 
on the theory that some time or other everyone is a prospect 
for a car. Dealers who follow this plan call at every door 
and at every office, a brief sales talk is made and some bit 
of advertising such as a small catalog or circular is left. 
An attempt is made to get an expression from the prospect 
and if it appears that there is any possibility of his becom- 
ing a car purchaser within a reasonable length of time, his 
name and address, together with other conditions, are jotted 
down on a card which is taken back to the dealer's office and 
is used as an active prospect file for further solicitation. 

This plan has the merit of not over-looking anyone. A 
dealer who handles the low priced car has a better chance 
of reaping success from this plan than one who sells the 
higher price or even the medium priced car. 

For most lines of cars a campaign more directly aimed to 
secure actual prospects seems advisable. 

Special classes of prospects. — There are certain special 
classes in every community, no matter what its size, that 
are excellent prospects for cars. And the automobile dealer 
would do well to take his city directory or the directories 
of the cities included in his territory and check off for 
investigation and solicitation these classes. Many of these 
already have cars, but in case they do not they certainly 
should. Then there is the renewal business, including the 
sale of new cars to those who have old ones. 

The use of horses is almost out of date in delivery and 
factory service. Any concern in an automobile dealer's ter- 

31 



AUTOMOBILE SELLING 

ritory still employing several horses should make an excel- 
lent prospect for passenger cars. 

Every doctor should have an automobile. By means of 
the car, a doctor can increase the number of personal calls. 
He wastes less time in going to the places when he is 
rushed. He is enabled to save lives. He owes it to himself 
as well as to his patients to use rapid means of transporta- 
tion and therefore should own a good serviceable car. A 
great many doctors own two or more cars. 

Real estate men find a passenger car of actual necessity 
in conveying prospective customers to the properties offered 
for sale. A great many more customers can be handled in 
this way than by any other method of conveyance. 

Salesmen, collectors, inspectors and other employees of 
concerns who must travel make good prospects for auto- 
mobiles. If the employees cannot be sold, the effort should 
be made to sell their employers. 

It has been conclusively shown that in most territories 
salesmen can visit several times as many dealers and towns 
by means of motor transportation as by means of trans- 
portation by interurban trolleys or steam railroads. The 
savings, it should be noted, cannot always be computed in 
costs per mile but rather in reduced over-head expenses per 
dealer visited by the salesmen. It may cost more per mile to 
use an automobile than railroad transportation, but the 
losses of the salesmen's time in waiting for trains and in 
seeing fewer customers overbalances the difference in trans- 
portation costs. 

In agricultural communities, stock buyers, grain buyers, 
fruit buyers and others who must go from farm to farm in 
carrying on their business with agriculturists, dairymen or 
gardeners, should have automobiles. And if not already 
supplied should make excellent prospects. 

Plumbers, tin smiths, building contractors and others in 

32 



WHO PROSPECTS ARE AND HOW TO FIND THEM 

similar lines should make good prospects for cars to be used 
in their business. 

Farmers who have sufficient income and business turn- 
over also make excellent prospects. Farm labor is scarce. 
Wages are high. There is now and there has always been a 
great waste of time in getting from the farm to town and 
back, in going from place to place on the farm, and so on. 
The automobile dealer has an excellent chance to help 
reduce this waste of the farmer's time. The automobile 
on the farm helps to keep the young people at home. With 
rapid, easy means of conveyance the strong desire to mi- 
grate to the city is greatly moderated. In the old days the 
farmer felt tied to his farm and his small community. This 
feeling often led to bitterness. It accounted for a large 
part of the cityward movement. The automobile serves in 
a remarkable way to reduce or remove this feeling. It frees 
its owner from the fetters of his environment 

Why concentrate on the bankers and merchants. — 
Every small town as well as city banker should own an 
automobile, not only because he and his family would enjoy 
it as a convenience but also because the banker with a 
car will be in a position to get out and see more of the 
territory from which his business comes. There is every 
reason why the automobile dealer should do everything 
in his power to sell the banker. The banker who is not 
fully sold on automobile transportation may exercise nega- 
tive or objectionable influences upon the dealer's other 
prospective customers some of whom are certain to come to 
the banker to negotiate loans in order to buy their cars. In 
more cases than is commonly supposed the banker who has 
not fully understood the value of automobile transportation 
has effectually killed the sale of automobiles to those who 
have applied to them for credit to complete the transaction. 
The automobile dealer must make every effort to prevent 
this type of occurrence in his particular community. The 

33 . 



AUTOMOBILE SELLING 

sale of a car to the banker will prove to the banker its 
value, but if a car cannot be sold to him, then at least his 
good-will should be gained by convincing him of the value of 
motor transportation for other classes of business in the 
community. This much the automobile dealer can do. 

There is another important indirect effect to be obtained 
by selling automobile transportation to the banker. In this 
way the automobile dealer gains a method demonstrating 
to the banker his own business ability and that should re- 
enforce his own chances of securing the credit that he may 
need from time to time in his business dealings. The moral 
is obvious. Cultivate your banker. 

Present car owners. — Present car owners usually are 
considered the best prospects for higher priced or even 
medium priced cars. The owner of a low priced car may 
be considered a good prospect for a medium priced car, 
and a customer who has owned a medium priced car makes 
a good prospect for a higher priced car. . Sooner or later 
the replacement of old cars will come to be the most import- 
ant part of the automobile industry. Even if the sale of 
cars to those who have never owned them before is still 
the largest item in the community the dealer who expects 
to be in business ten years from now should begin to culti- 
vate business relations with those who own cars no matter 
what make. 

Therefore every car owner is a prospect. Old cars in 
use should be watched and whenever the owner of such 
a car is ready to exchange or to buy a new one outright the 
dealer should be ready to place his proposition before him. 
Some automobile dealers have found it an excellent plan 
to get active prospects by circularizing the owners of all 
cars more than a year old in their territory, calling attention 
to the advantages of the new car and pointing out how an 
exchange may be readily made. An effective method fol- 
lowed by several car dealers is to have boys pass through 

34 



WHO PROSPECTS ARE AND HOW TO FIND THEM 

the streets where cars are parked and attach a tag to the 
windshield of each with a statement that "This car may be 
exchanged for a new car at Blank Automobile Company 
by the payment of a moderate difference." 

Special methods of securing names. — Through continued 
circularization, solicitation and sale of accessories, gasoline, 
oil and other supplies to car owners in the community the 
car dealer should be able to keep closely enough in touch 
with car owners in the community to know when they are to 
become purchasers of new cars and also to help establish 
relations that will be helpful in effecting the sale at that 
time. One of the important reasons why automobile dealers 
should handle accessories, oil and supplies, is that they may 
be in position to work in close contact with those who will 
sooner or later be in the market for new cars. 

Real estate transfers in the community are watched by 
some dealers for prospects. Sellers of real estate are solic- 
ited. A real estate sale is considered as the medium through 
which the prospect obtains enough money so that he may, 
if he wishes, purchase a car. Announcements of marriages 
are followed up by other automobile dealers. It is asserted 
that husbands of young women from families owning cars 
make most excellent prospects. 

Returned officers and soldiers if in business or if em- 
ployed should make excellent prospects. Heads of families 
in which there are young officers or soldiers are excellent 
prospects for cars. The effect of the military life will 
undoubtedly be to increase the demand for automobiles 
among army men. 

If the car the dealer handles runs into considerable money 
it is obvious that the prospect list must be confined to those 
who have a certain amount of means. The automobile 
dealer can get a line on classes within his territory finan- 
cially able to buy cars by using the tax lists, by looking up 
names of stock holders of corporations, by reference to 

35 



AUTOMOBILE SELLING 

social blue-books, and by securing lists of charge customers 
of the best stores in town. 

For accessories and supplies the prospects are of course 
the car owners, and the names of these can be readily ob- 
tained. Automobile dealers should not fail to remind his 
prospects of these lines, of his house, and his goods at 
least once a month. Just how this may be carried out is 
more fully described in a following chapter on "The Auto- 
mobile Dealer's Advertising." 

The prospect record. — Experience has shown that the 
best form of prospect record is a card file, one card for 
each prospect. Each card should have appropriate spaces 
for name, address and other information concerning the 
prospect's business, his standing in community, his special 
interests, uses for a car, whether he owns a car at the 
present time or not, and, if so, what make, when he is likely 
to be in the market for a new car, what he will want to pay, 
and so on. 

Obviously the prospect file is one of the most valuable 
assets of the dealer's business, therefore careful attention 
needs to be given to building it up and keeping it in good 
condition. Periodically, at least as often as every six 
months, the entire list should be gone over with a view of 
culling out the names of persons who for one reason or 
another are no longer prospects. New names should be 
added whenever and wherever they can be secured. Em- 
phasis should be placed on the point that every man in the 
organization, whether he be a salesman or a repair man, if 
connected with the business, it is his duty to report the 
name of persons discovered who may become prospects 
for automobiles. 

Preliminary information about prospects. — The pros- 
pect list furnishes the material with which salesmen of the 
organization can set to work. But in addition to the infor- 
mation usually contained in the prospect file, before setting 

36 



WHO PROSPECTS ARE AND HOW TO FIND THEM 

out to make the actual solicitation, most automobile dealers 
and their salesmen find it advantageous to find out about 
their prospects in considerable detail. If the salesman has 
a knowledge of his prospect's business, his earnings, his 
reputation with other business men and his various other 
interests, he will be in a much better position than one who 
merely takes a chance on his prospect's wanting to buy a car 
on a general solicitation. 

As a part of this preliminary study of the prospect, before 
setting out to make the personal solicitation, the salesman 
should determine so far as possible precisely what his pros- 
pect's needs are for an auto. This will make it possible 
for the salesman to determine what salespoints to empha- 
size. For example, the main point with certain prospects 
may be that the automobile will prove profitable. For 
others, the main argument may be that of convenience. For 
still others it may be for the pleasure it will give. In the 
books on salesmanship, this preliminary study of a prospect 
is known as the "preparation" or "pre-approach." Stated 
in simple terms it is merely determining in advance what 
main points of the sales talk can be used and how they shall 
be stated. 



37 



CHAPTER VI 
MANAGEMENT OF EMPLOYEES 

Good employees needed. — One of the first essentials to 
the success of an automobile business is to have the right 
sort of employees. Not only good salesmen but also the 
right sort of repair men, mechanics, and so on. Employees 
can make or break any business, and between the extremes 
there may be all classes of variations. Therefore the man- 
ager of the business can scarcely give his attention to any 
more important matter than surrounding himself with the 
right type of employees. An ounce of care used in the 
selection of employees is worth a pound of management 
after the employees have been hired. 

Analysis of job. — The first step to securing the right 
employee is a careful analysis of the work that is to be 
done by that employee after hired. Whether the position 
be great or small, whether the duties are numerous or few, 
an excellent plan to follow is to set down in writing every 
kind of work that it is expected or hoped the employee will 
be able to do. It is urged that this should be done in writ- 
ing for the reason that writing makes the manager think 
closely, and therefore helps him to define exactly not only 
the work to be done, but also the kind of employees to do 
the work. 

Study of applicant. — The applicant for a position should 
be studied carefully to determine whether he will fit in with 
the needs of the place. It is important that this should be 
done in detail. Judgment based on but a few qualities is the 

38 



MANAGEMENT OF EMPLOYEES 

chief cause of most misfit selections. One of the greatest 
mistakes comes from judging the prospective employee 
from the first appearances. First impressions are valuable 
but are frequently misleading. Some of the best salesmen 
in the automobile business would never have been selected 
for their positions if first impressions were the only basis 
for their selection. 

A check list needed. — The only way to make sure that 
applicants are given thorough consideration, and, from their 
standpoint, a fair chance, is to use a check list of all the 
points that are to be considered in looking over your man. 
No one would think of judging cattle, horses, sheep, or dogs 
without such a check list. In judging live stock such check 
lists are called score cards. You wouldn't want to take 
chances on buying used cars of a variety of makes by con- 
sidering only the looks of the upholstery. Similarly, it is 
just as important to consider every detail in buying the serv- 
ices of employees. 

A model application blank. — The best form of check 
list for use in employing help is a thoroughly worked out 
application blank calling for fairly complete statements 
about the applicant, and to be filled out by the applicant him- 
self. Even if only a few employees are hired in a year's 
time, it is advisable to have blanks printed or duplicated for 
this purpose. A good working model is presented in Fig- 
ure 2. It is intended to be suggestive. Changes or addi- 
tions should be made to suit local conditions. 

In addition to the interviews and the use of an applica- 
tion blank, the employer should satisfy himself still further 
upon the qualifications of the applicant by carefully looking 
up the references presented. There are those who claim 
ability to judge qualifications of applicants for positions 
by observation and conference, but experience has shown 
that careful observation when accompanied by investigation 
of references brings the best results. 

39 



AUTOMOBILE SELLING 

Figure 2 

APPLICATION FOR EMPLOYMENT 

New Castle Auto Co., 

New Castle, Mo. 

1. Position desired 2. Date 

3. Name 4. Present address 

5. Telephone number 6. Permanent address 

7. Date of birth 8. Place of birth 

9. If born outside of this country, are you naturalized 

1st papers 2nd papers 

10. What is your religion. (Applicant need not answer if he does not care to) 

11. Name and address of nearest relative 

12. Single or married 13. How many and whom do you support 

14. Are you looking for a permanent position or a temporary one 

15. What preference, if any, have you as to the kind of work you wish to do 



16. Are you willing to do any kind of work which may be assigned to you 

17. Do you object to work which will necessitate your traveling 

18. Are you employed 19. Reason for desiring to change . 



20. When can you begin work 21. Salary expected now 

22. What do you think your earning capacity should be within two years. 



23. Education 


How many 
years 


Name of location 
of school 


Year of finishing 
and course 


































Other 

















40 



MANAGEMENT OF EMPLOYEES 



24. How do you use your spare time at present 

25. What papers and magazines do you read regularly 

26. What is your favorite form of recreation 

27. Do you live with your parents or relatives 

28. Do you board rent an apartment own your own home 

29. EXPERIENCE. Position Employed Salary received 
Give names of the firms Held From To Minimum Maximum 
you have worked for be- 
ginning with the last. 

Name 

Address 

Reference Address 

Name 

Address . 

Reference Address 

Name 

Address 

Reference Address 

30. What work, that you have done in the past, did you do the best 



31. How much of last year were you ill Nature of illness 

32. Have you any physical defects Nature of defects 

33. How is your eyesight 34. How is your hearing . . . 

35. What is your height 36. What is your weight . 

37. What besides pay is important to you in a job 



(Give names of at least three people who have 
38. PERSONAL REFERENCES, known you for at least five years. They must 
not be relatives or previous employers) 

Name Address Occupation 



(Signed) 

Date of interview By whom interviewed . 

4* 



AUTOMOBILE SELLING 

Salaries. — A salesman's salary is theoretically and really 
his share in the profits of the business. This share he has 
himself earned for the business. Practically, however, sal- 
aries are determined largely by market conditions of the 
supply of salesmen and the rate at which they are willing 
to work. 

The ideal method of remunerating salesmen has probably 
not yet been worked out. The customary methods are to 
pay so much per week or month, or a certain commission 
based on sales. Commissions vary but in a good many in- 
stances they amount to 5%. 

Commissions. — Remuneration on the basis of time has 
little to recommend it except that it is customary in most 
businesses. It does not furnish the direct incentive to 
secure results that the commission plan supplies. On the 
other hand, the commission plan is not ideal. There is con- 
siderable work to be done by an automobile salesman which 
in itself does not directly bring in business, and which would 
be largely neglected if the salesman is paid on the commis- 
sion basis. The salesman paid so much per week or month 
is more likely to look out for the interests of the house in 
a long range way than the one who is paid 5% of his sales. 

Perhaps a better form of remuneration is a combination 
of a time rate and a commission. This can be accomplished 
by allowing the salesman a drawing account or a certain 
definite amount per week and a commission on gross sales, 
or, on sales above a certain point. 

Quotas and bonuses. — When the remuneration takes the 
form of a salary and of a commission paid on sales above a 
certain amount, it is usually called a quota and bonus sys- 
tem. Such a system can be made very effective if care is 
used in setting the quota and if a sufficient commission or 
bonus is granted for results above that quota. The bonus or 
commission presumably gets all of the results from the in- 
dividual that he can produce. And the assurance that there 

42 



MANAGEMENT OF EMPLOYEES 

will be a regular weekly salary no matter what the results 
turn out to be, removes the objectionable feature generally 
mentioned in the discussions against the commission pay- 
ment plans. The quota and bonus plan thus secures the best 
efforts from the salesmen, shows up the drones, and tends 
to makes them think about their work. 

One point that needs to be observed in fixing a quota, 
under the quota and bonus plan, is that the quota must not 
be placed too high. It should be possible for an average 
man to reach his quota and, by exerting special effort, to 
pass it. The salary fixed should be an average salary such 
as an average man might presumably earn. The bonus or 
commission above that salary should represent a return for 
special ability and special effort. 

Naturally the quota if fixed by the month, will vary from 
season to season, and from month to month. If the quota 
is placed too high it will be too difficult to secure the bonus 
and the salesmen will grow discouraged and will cease try- 
ing. It should be entirely possible to earn some part of 
the bonus. On the other hand, if the quota is placed too 
low, the firm will lose. If the salesman does not have to 
exert some special effort to get the bonus, there might as 
well not be any bonus. It should in this case be considered 
a part of the regular salary or as a gift 

The amount of the commission for sales above quota may 
run somewhat lower than the percentage cost of selling. 
For example, if it is found that salesmen's salaries and 
commissions amount to 5% of their sales then 5% may be 
taken as the percentage the straight salary should bear to 
sales. That is to say, a salesman whose salary amounts to 
$40 per week should have sales amounting to $800 per 
week. If his sales fall below $800 per week it can be seen 
that his business is unprofitable. Now on passing the quota 
most concerns fix upon a bonus or commission somewhat 
lower than the rate at which the salary levels are fixed, as 

43 



AUTOMOBILE SELLING 

for example, 2j^ or 3% of sales in concerns in which the 
cost of selling runs about 5%. So if a salesman whose sal- 
ary is $40 per week and has a quota of $800 sales per week, 
actually sells $1200 per week, he has passed his quota by 
$400. If allowed a bonus of 2j^% on sales above this 
quota, his money bonus will amount to $10 and his income 
per week will therefore be $50. 

The net result for this man then is that the cost of selling 
is not 5% of sales but just a fraction more than 4%. The 
arrangement of the quota and bonus plan thus gives the 
salesman a direct incentive to secure greater results week 
by week, and at the same time helps the management to 
reduce the percentage costs of the sales. 

Profit sharing. — A great deal is being said nowadays 
about profit sharing plans for salesmen and other employees 
and a few words may not be out of place about this subject. 

Profit sharing is carried on in several different ways, the 
commonest being as follows: 

1. Of the net profit for the year, after all expenses and 
salaries of employees and of management are paid, 
and after all replacements and reserves are pro- 
vided for, a few concerns now share profits by first 
giving capital a share of from 6 to 8 or 10% interest, 
as it were. The remainder is distributed among the 
owners and the employees, in some cases divided 
evenly, half going to the owners and half to the em- 
ployees. In other cases 24 of the profit remaining go 
to the owner and %. to the employee. 

2. Of the net profits for the year some concerns make 
a division into three equal parts, one to go to capital, 
one to the management, and a third to labor or to the 
employees. Since the management's share is ac- 
counted for under the first plan in the form of sal- 
aries the main difference between the two methods is 

44 



MANAGEMENT OF EMPLOYEES 

that in the first plan a limited percentage is taken as 
the share for the firm's capital, while in the second 
plan capital and labor share alike. 
3. The commonest method of profit sharing is really 
not profit sharing at all except in name. Of the total 
net profits of a concern at the end of the year the 
management arbitrarily sets aside a certain amount 
to be distributed among its employees. There is no 
principle involved in this. It is merely a gift from 
the management to the employee. The employee 
does not know in advance what he is to get. After 
he gets it he doesn't know upon what basis it has 
been given. It is effective merely as a gift is effec- 
tive. It has its value as a form of remuneration, but 
to call it profit sharing is to use the term very loosely 
indeed. 

The usual method of dividing profit sharing funds among 
individual employees seems to be on the basis of salary 
received. Thus an employee getting $40 a week usually 
receives twice as much as the one getting $20 a week. As- 
suming that the salaries are already justly rated, this method 
of distribution seems fairly adequate. 

Profit sharing rewards team work and co-operation. It 
tends to draw the employee more closely to the concern, 
and in some notable instances has increased the interest of 
the employees remarkably in the business. 

To serve most effectually the distribution of profits should 
be made as frequently as every six months if possible. A 
year between distributions is a long time to wait for most 
people. Salesmen, particularly, have short memories and 
are very ready to discount the future when under tempta- 
tion to shirk or let work slip by. If the distribution is 
made every six months, the amount will of course not be as 
large as at the end of the year, but if the business has been 

45 



AUTOMOBILE SELLING 

successful the amount may seem worth while even for 
the lowest paid employee. 

Some who have considered profit sharing carefully, say 
that it is wrong in theory since it is one-sided. They claim 
that profit sharing does not take into consideration the pos- 
sibility of losses. If the business fails to make profits but 
on the other hand comes out at the end of six months or 
a year with losses, they say, the employee should in prin- 
ciple share in the losses. Whether this view is correct, in 
theory or not, it is wholly unpracticable. Employees can 
never be expected to make up business losses by a reduction 
of salary or otherwise. It would be impossible. This point 
of view about profit sharing is wrong. The main purpose 
of profit sharing is to get employees to take a keen and 
active interest in the business. It is a premium paid for 
extra services, for stronger loyalty and for more construc- 
tive thinking. A share of the profits of the concern is an 
easy concrete proposition with which to stir the minds of 
the employee to think for the same thing that the employer 
is thinking about — more profit. What the employee finally 
gets is plain remuneration for his extra work, loyalty, or 
thinking. 

A certain indefiniteness in the mind of the employee as to 
the exact amount of the profit contributes to its successful 
operation provided there is certainty that effort will bring 
results. A well managed profit sharing plan aims at show- 
ing employees that the greater the effort the greater the 
profit resulting. 

Stock ownership. — There is one other form of profit 
sharing, which when practicable is perhaps the best of them 
all, and that is employee ownership of stock. Where 
the concern has been organized as a corporation, and where 
it may be possible to sell stock to the employees, the result 
of such stock distribution is that the purchasers of this 
stock have a legal interest in the firm that arouses their 

4 6 



MANAGEMENT OF EMPLOYEES 

working interest in a wonderful way. They begin to feel 
that they have a stake in the progress of the concern. They 
are indeed part owners. An increasing number of automo- 
bile concerns as well as of businesses in other lines are 
adopting this form of profit sharing, and it is to be expected 
that many more will follow this plan in the future. 

Other incentives. — An effective system of remuneration, 
whether it be in the form of salary, commission, quota and 
bonus, or profit sharing, is a most important method to 
secure the interest and co-operation of the employee for the 
good of the business but it is not the only means. Oppor- 
tunity for advancement, recognition for services performed, 
opportunity to exercise authority even if within a very lim- 
ited field, opportunity for carrying out self developed plans 
are all important incentives which should receive considera- 
tion from the employer who desires the best results from his 
employees. 

Training employees. — Every business manager who must 
have the help of employees must give consideration to the 
problem of training them for his work. It is not always 
possible to secure employees who have already had just the 
right training and experience to do the work without addi- 
tional help along this line. There is but one way out of 
this problem and that is for the business manager to set 
about in a systematic way to provide the means of making 
up the deficiency. 

Training may be provided in the form of personal instruc- 
tion and advice given in the course of the work. The only 
difficulty about this method is that the average manager 
has his time so fully occupied that it is difficult to give atten- 
tion to the development of his employees in the way that 
they need. 

There is no question but that a well worked out appren- 
ticeship plan, particularly for those employees working in 
the shop, is one of the best for developing employee ability. 

47 



AUTOMOBILE SELLING 

When a young man can be found who is willing to give three 
or four years to learning to be an all round automobile 
mechanic, the result is usually highly satisfactory not only 
to the concern but also to the young employee also. The 
chief difficulty, is in getting a young man in these days who 
will agree to work for the necessary amount of time to 
learn the business. 

A salesman can be helped effectually by trips to the fac- 
tory making the car which he sells, by reading the trade 
papers covering the automobile field, and by study of books 
on salesmanship covering the subject in a general way. Any 
employee, be he salesman or mechanic, who fails to read 
the trade papers covering the automobile business is over- 
looking one of the most important methods of keeping 
up to date and of advancing in his line of work. 

It will be noted that in the application blank presented in 
this chapter one of the questions that are asked of the appli- 
cant is: 

"What papers and magazines do you read regularly?" 

An applicant who replies that he is carefully following 
the trade papers in the field in which he desires employ- 
ment, by that fact alone, deserves careful consideration. His 
mind is open and growing. 

Not the least of the good sources of education and infor- 
mation for the enterprising salesman is the advertising 
matter put out by the house producing the car which he has 
to sell and by the manufacturers producing competing lines 
of automobiles. This matter is usually prepared by very 
able men who have made intensive studies of sales methods 
and who have incorporated those methods in the literature 
that they give out. Good advertising not only gives infor- 
mation about the car it is trying to sell. If intelligently 
studied it also gives ideas on how to present sales points 
to customers. Good advertising helps a salesman by show- 
ing him both what and how. 

48 



CHAPTER VII 

SOME DESIRABLE QUALITIES AUTOMOBILE SALESMEN 
SHOULD POSSESS 

In the selection of salesmen for the automobile business 
so far as possible, the manager needs to take into consid- 
eration certain personal qualities or qualifications, in addi- 
tion to experience or training, that will fit for selling. To 
succeed in selling automobiles as well as in selling other 
important lines a man should have the qualities described in 
the following paragraphs in a marked degree. 

Health. — A salesman should not only be free from ill- 
ness, but he should have health and its accompaniment, 
surplus energy in abundance. A salesman's health is to a 
large extent under* his own control. The conditions are 
sensible eating, the right amount of sleep, appropriate cloth- 
ing, fresh air breathing and exercise. 

Personality. — Good health helps to make good person- 
ality. It makes a man optimistic and happy. These quali- 
ties are needed by every man who has to deal with people. 
But tire salesmen also need to be agreeable, likable men of 
good appearance, openminded and helpful in their attitudes, 
quiet, earnest and straightforward in their behavior. 

Honesty. — Absolute honesty to the Company that em- 
ploys him and to the customers of the Company, as well 
as to others, is required of every employee of the Com- 
pany. Honesty refers not only to money and property but 
also to the use of time and ability. 

Industry. — Other things being equal, the automobile sales- 

49 



AUTOMOBILE SELLING 

man who sees the most dealers each week and labors most 
diligently is going to be most successful. A lazy man who 
sticks to his job hurts three parties — himself, in not doing 
his best; his company, in not getting the business that it 
should have; and another man who would make more of 
his opportunities if given a chance at the territory. Ex- 
perience shows in every line that consistent, intelligent 
"plugging" counts for more than genius in salesmanship. 

Tact. — Tact is the ability to do and to say the right thing 
at the right time and place; to avoid giving offense; to 
sense the mental attitude of other people. The first neces- 
sity of tact is an open mind and a desire to understand and 
sympathize with the thoughts of others. Selfish people are 
never tactful, because they are thinking too much about 
themselves. Selfishness and thoughtlessness are the two 
causes of tactlessness. A salesman should be careful not 
to offend in any regard, to note quickly by the expression 
of the dealer whether he (the salesman) is on dangerous 
or safe ground and to seek to gain good-will by both word 
and action. Tact is non-resistant upon all unessential mat- 
ters. There is a rule of good salesmanship. "Never ar- 
gue." To argue means to irritate. To irritate in any way 
is tactlessness. 

Knowledge concerning merchandise and of business 
methods. — Salesmanship is not in the class of unskilled 
labor. It is not a trade. It is, or should be, a profession. 
A salesman is paid for his brains and his ability to use his 
brains. A brain cannot produce something out of nothing, 
any more than a carpenter can build a house without lum- 
ber. Knowledge is the raw material with which the brain 
works. Therefore the salesman should get knowledge from 
every possible source to help his brains produce. He should 
study trade papers ; read books on business and salesman- 
ship ; read up on car dealers' problems ; find out about cars 
in all lines ; inform himself. 

5o 



QUALITIES SALESMEN SHOULD POSSESS 

Confidence in his own ability to sell cars. — Ability to 
talk intelligently, sympathetically, logically and tactfully. 
This quality means the ability to use the knowledge you 
have concerning your line and business to advantage. Cus- 
tomers are human beings, the same as the rest of us. They 
do the best they know how to do to succeed. Many of them 
do not know that the car offered will bring them the most 
profit and satisfaction. Many do not know how to get the 
best results from its ownership. They can't be expected to 
buy until they become interested. It is impossible to be- 
come interested without understanding. They won't under- 
stand until they are given the facts by yourself, by the 
Company's advertising, or by the testimony of consumers, 
or by a combination of these methods. The salesman must 
TEACH the customer the many advantages of owning the 
car. 

Enthusiasm.' — Enthusiasm is confidence in action. You 
must know your merchandise and your work before you 
can have confidence, — the greater the knowledge the greater 
the confidence. Knowledge and confidence make the work 
agreeable and you must like your work in order to be en- 
thusiastic. A salesman must have enthusiasm. He is paid 
for having it. Reason expresses itself in cold language, but 
enthusiasm shows itself in the ring of the voice, the in- 
terested face, the brightness of the eye, the tension of the 
body and gestures that emphasize thought. Reason carries 
no appeal to the heart, but enthusiasm is contagious. 

Customers can't help becoming enthusiastic over what 
the salesman finds«so interesting. In addition to knowledge 
and confidence in your goods and in your proposition, to 
be enthusiastic you must have your body full of energy. 
You can't be enthusiastic when sick. You can't be en- 
thusiastic with your belly full of indigestible food. You 
can't be enthusiastic if you haven't had sleep enough ; you 
can't be enthusiastic if you are worrying about anything; 

51 



AUTOMOBILE SELLING 

you won't be enthusiastic if you have a lazy streak in you. 
YET, SALESMANSHIP DEMANDS ENTHUSIASM. 
If you would be a salesman, you must have enthusiasm, not 
frothy, superficial, affected, make-believe enthusiasm, but 
enthusiasm that comes from the heart. 



52 



CHAPTER VIII 

WHAT THE AUTOMOBILE SALESMAN SHOULD KNOW 
ABOUT HIS CAR 

Salesman cannot be technically trained. — In discussions 
concerning the preparation of a salesman for his work, the 
point frequently comes up whether an automobile sales- 
man should be technically trained or not. There are those 
who believe that a salesman should be equipped with a thor- 
ough ground work of technical knowledge. Some go so 
far as to state that good salesmen must be technically 
trained men. Necessarily there are but few men to be had 
for the sales field who have had such technical training in 
automotive engineering. And if all organizations were to 
be made up of this class of salesmen there would be but 
few sales organizations and the sales costs would probably 
be very high. 

As a matter of fact automobiles are sold principally by 
salesmen who are not technically trained, so that this point 
is more theoretical than practical. 

There are others, however, who go to the opposite ex- 
treme and say that technical knowledge of any kind is a 
damage to an automobile salesman. Presumably this posi- 
tion is taken on the theory that a little knowledge is a dan- 
gerous thing, and that a salesman who possesses a slight 
knowledge about the technology of automobiles, when get- 
ting into a discussion with a prospect, involves himself so 
deeply that he confuses his prospect as well as himself. 
Further, it is urged, that most automobile prospects are not 

53 



AUTOMOBILE SELLING 

so much interested in the technology of the car as they are 
in the service of the car. This is undoubtedly right. Deep 
discussions on the engineering features of a car have no 
place in a sales talk except in so far as they may be used to 
prove that the car can deliver certain services or that it 
possesses certain qualities. 

Knowledge needed by salesmen. — While most cars are 
sold by salesmen who have little or no technical knowledge 
about their cars, all who have observed the sale of cars will 
agree that the best salesmen are those whose knowledge is 
complete enough so that they can satisfactorily answer any 
question raised by their prospective customers. It is the 
misuse of technical information that gets the sales- 
man into trouble. If a question about the technology of the 
car cannot be answered in a simple manner, it had better 
not be answered at all. Ordinarily the salesman loses noth- 
ing of his influence with his prospective customer if he 
frankly states with respect to some technical question con- 
cerning his car that he cannot answer it. But if he attempts 
to answer it, and does so ineffectually, or in a manner that 
the prospect does not understand, he invariably harms his 
sales chances. If the writer were an automobile salesman 
he would use every effort to gain as much technical knowl- 
edge as possible about the line that he attempts to sell. He 
would hold before him the idea of equipping himself so 
well that he would be able to answer any questions about 
the car that any prospect might ask. 

How to secure the knowledge needed. — How shall this 
information be obtained? The real caliber of a salesman 
for growth is represented better by his ingenuity in getting 
knowledge about the product he is trying to sell than in any 
other way. Some of the best ways most commonly used 
are the following: 

First, by study of the literature issued by the factory 
producing the car, including their catalogs and advertising 

54 



WHAT SALESMAN SHOULD KNOW ABOUT CAR 

matter. In addition to the sales talk commonly included, 
there is generally presented something of the technical side 
of the car and its construction. Every part should be care- 
fully absorbed. 

Second, by study of the literature of other and competing 
car companies in the same manner as of the company whose 
lines the salesman is selling. 

Third, by study of the car itself, by handling and running 
it. An automobile salesman must know how to run a car, 
and should know what to do with it in most emergencies. 

Fourth, by study of books on automobiles and automobil- 
ing. There are now several excellent little technical man- 
uals on automobiles, any one of which will give the auto- 
mobile salesman an excellent fund of knowledge which he 
may draw upon as he may require. 

Fifth, by visits to the factory producing the car. Cer- 
tainly every automobile dealer should visit the factory pro- 
ducing the car he is to sell. It may not always be possible 
for the salesman to visit the factory, but the dealer himself 
can, if he tries, convey a good share of the information 
gained at the factory to his salesmen, concerning the meth- 
ods used by the factory in the construction of the car. Every 
salesman should plan to visit the factory sooner or later. 

The dealer should give consideration to a plan, that has 
been successfully carried out in many places, of sending his 
salesmen to the factory making the car they sell as a reward 
for special effort or for success in passing some pre-deter- 
mined sales quota. The trip to factory is always an excel- 
lent sales incentive. It is usually more powerful than an 
offer of the amount of the money the trip may cost. But 
the outlay is certain to produce returns after the trip as well 
as before. 

Sixth, by study of current periodical literature, including 
the house organs and trade papers of the automobile field. 
The automobile salesman who neglects this important source 

55 



AUTOMOBILE SELLING 

of information is shutting off an important avenue through 
which to gain a practical automobile selling education. 

What salesman should know about his car. — Specifi- 
cally the automobile salesman should know and be able to 
state what he knows about the design, finish and general 
lines of his car. He should know its dimensions and weight 
accurately and also, similarly, the figures for competing cars. 
He should know what its load and speed capacities are. 

The most vital part of the automobile, of course, is the 
engine. It is difficult to see how one can be a good auto- 
mobile salesman without understanding the principle of the 
internal combustion engine. In this connection the sales- 
man should understand and be able to demonstrate the 
principle of the carburetor used in the engine in his car, and 
to be able to outline its advantages. He should know the 
dimensions of the engine bore and stroke, not only of his 
car, but of competing cars as well. 

He should certainly be familiar with the parts, the opera- 
tion and methods of taking care of the starting and light- 
ing systems used in his car. Such knowledge as this should 
furnish the salesman with a number of excellent sales 
points. The same is true for such details of the car as its 
clutch, the transmission, driving shaft, axle construction, 
brake, steering gear and oiling system. Perhaps the aver- 
age customer does not care much about the technical con- 
struction of the steering gear, but he is certainly interested 
in knowing that it will not easily get out of order. By means 
of his knowledge of the construction of the steering gear 
the salesman may be able to prove to the prospective cus- 
tomer that in his car the steering gear is perfectly safe. It 
is important in connection with all of these points that the 
salesman should know what the parts are made of and why. 

The finishing touches on a car are usually more appre- 
ciated by customers than the internal out-of-sight mechan- 
ism and particularly by women. The salesman should be 

56 



WHAT SALESMAN SHOULD KNOW ABOUT CAR 

fully acquainted with the methods of finishing the edges 
of the body, the kind and quality of trimmings used, the 
quality of plating, of varnish, and of finish applied and 
so forth, and should be able to point out these details to 
observant prospective customers. Occasionally these de- 
tails of construction carry more weight in a sales argument 
than information concerning the bore and stroke of the 
motor. As the technical mechanism of automobiles ap- 
proaches nearer and nearer to perfection sales emphasis 
must be placed more and more upon such points. In the 
construction of most cars there are parts used made by well 
known manufacturers, manufacturers with national repu- 
tations for quality goods. The salesman who is familiar 
with his automobile and all of its parts will make the most 
of this fact. If the carburetor, bearings, brake lining, up- 
holstery material, axle, or other parts come from any of 
these well known makers, the salesman can capitalize his 
sales talk on the use of these as against his competitors who 
do not use them. The make of tires with which the car is 
equipped may similarly constitute a sales point giving pres- 
tige to the car. Information regarding these parts can usu- 
ally be obtained readily by writing to the manufacturers of 
these parts. 

Exclusive features. — Exclusive features not found in 
other cars, particularly not found in other cars of the same 
class, should be known and understood by the salesman who 
should emphasize them in his sales talks to his prospects. 
The individuality of a car depends very largely upon its 
exclusive features, so after a prospective customer has been 
sold on the value of motor transportation for his use his 
decision to accept one car rather than another will depend 
very largely upon these special features, any one of which 
may be small in itself but taken as an additional feature 
to the general service offered by the car it may turn the 
sale in the direction that the salesman wishes it to. 

57 



AUTOMOBILE SELLING 

Costs of operation. — The salesman should also be fully 
familiar with the cost of operation of his car, expressed in 
cost of oil, gas, tires, upkeep and so forth, so that his pros- 
pect may be informed in a concrete way what it will prob- 
ably cost him to run and keep a car after he has purchased 
it. Costs of operation may not figure so extensively in con- 
siderations where the car is to be used for purely pleasure 
purposes, but where the car is bought for business uses 
costs of operation are important considerations. It is to be 
expected as time goes on and as the market for the automo- 
bile expands that more and more thought will be given by 
prospective customers to what it will cost to run and to 
keep a car. It is believed that salesmen will have to give 
more attention to these items, particularly to having the 
knowledge and the ability to handle it in such a way that 
their customers may see concretely what their costs will 
be in their particular businesses. Computing costs of opera- 
tion and probable profits from the use of the car in ad- 
vance are services that salesmen must be able to perform 
for their prospects. In the sale of motor trucks this is 
now one of the most important points. It will become more 
important as time goes on in the sale of passenger cars. 

Knowledge about the car makers. — Finally, the salesman 
should know something about the concern making the car 
which he is to sell. In this connection he should know 
its history, its growth and struggles upward, its capacity 
and reputation. Whether he has visited the factory or not 
it would seem essential that he should know something of 
the manufacturing processes, at least in a general way. 
This information can be gained from the company's litera- 
ture almost as well as from a visit to the factory, if the 
salesman will expend a little effort in study to get the 
information. 

Knowledge about the manufacturer gives depth and 
feeling to the salesman's knowledge about the car. It gives 

58 



WHAT SALESMAN SHOULD KNOW ABOUT CAR 

him a mental perspective of the automobile business. He 
comes to see his place in the business, his importance, and 
his line of advance and progress. The salesman who knows 
the manufacturers by name, their personal qualities, their 
reputation and so on is likely to be a strongly sympathetic 
booster for their line of cars, not only as a business propo- 
sition, but also because he naturally wants to be a booster. 

Inspections and tests. — One of the most interesting facts 
about the manufacture of an automobile, the knowledge of 
which contributes to the confidence that the salesman 
may have in a car and the confidence that he may in turn 
convey to his prospective customer, is the exhaustive in- 
spections and tests that the manufacturer of his car employs 
to secure excellence and uniformity of product. In the 
first place, all of the materials are tested to make certain 
that they come up to the specifications of the purchasing 
department. The testings of metals, of cover materials, of 
springs, of the woodwork, of paints and varnishes, are all 
extremely technical and scientific. Were it not for the well 
developed technique used in the testing laboratories of the 
automobile manufacturers, it would be impossible to put 
out cars so uniformly good as they do at the present time. 
Careful testing of materials not only insures uniformity of 
product but also cheapness of product. It costs a little 
more to have materials well tested before they go into the 
machine but in the long run it means the product will run 
longer, better, and more economically. 

In a similar manner, in the manufacture of the various 
parts supplied to the car manufacturer by parts manufac- 
turers, there is the same degree of care and attention given 
to the material entering into their construction. 

For example, in the manufacture of tires, at least in 
some of the leading companies, there is one inspector to 
every ten or twelve workmen. These inspectors are usually 
paid bonuses to discover anything that may be weak or 

59 



AUTOMOBILE SELLING 

wrong in the output of the workmen. The workmen them- 
selves are in some cases fined for errors and where piece 
work is the method their reduced output due to having part 
of their product rejected affects their pocket-books. So you 
have both workmen and inspectors operating with the 
strongest of interests, the pocket-book interest, in the direc- 
tion of putting out a product as free from imperfections as 
possible. 

In addition to the preliminary tests of the materials there 
are exhaustive tests applied to all of the parts before as- 
sembling. Careful tests are made of the springs before 
placing them in the car to insure the proper balance of 
strength and resilience with firmness. Axles and other 
parts of the car bearing the strain of travel are put to se- 
vere tests for strength. Tests are also made of the brakes 
to see that they operate perfectly. The electrical equipment 
is thoroughly tested. 

Finally before the body of the car is put in position the 
car is given a thorough road test by an automobile expert 
who makes any needed final adjustments and in this way 
tunes it up so that it will give perfect service when it reaches 
the final user. 

Knowledge about the company and its process of manu- 
facture will probably show the automobile salesman that 
the people back of the company making the car he sells in- 
cludes leading technical experts whose experience and abili- 
ties help to make the car as nearly perfect as possible. 

Before a salesman can do his best work in selling any car 
he must be fully sold himself and there is no method by 
which a salesman can be so thoroughly self impressed with 
the qualities of the car he has to sell as by knowing in 
detail what goes into it, how it is constructed and with 
what care the tests and inspections are made. 



60 



CHAPTER IX 
HIGH LIGHTS ON AUTOMOBILE SALESMANSHIP 

Steps of the sale. — In some books on salesmanship, a 
great deal of attention is given to the so-called "steps of the 
sale." These steps are usually said to include: First, the 
approach. Second, getting the prospect's attention. Third, 
securing his interest. Fourth, developing a desire, and fifth 
securing the order. 

Stated in another way, salesmanship, according to this 
analysis, is merely securing a customer's attention, and con- 
centrating that attention in an interesting way up to the 
point where the customer finally desires to own what the 
salesman has to offer to him. 

It is likely to be confusing if too much thought is given 
to these steps of the sale. In actual selling there can 
scarcely be said to be any well defined progress from one 
step to another. The prospect's mind simply passes from a 
state of no interest at all to one of deep interest in what the 
salesman has to offer. Study of steps of the sale is merely 
one of the many helpful methods of understanding the 
mental processes of the prospective customer. 

In this chapter we shall pursue a somewhat different 
study of the sale process. We shall indicate suggestions 
that may be applied by the salesman to his prospective cus- 
tomers. It is not to be presumed that all of them can always 
be. applied. In this regard as in every other the salesman 
must use his common sense and native ability. 

Time your calls. — After a salesman has made his prelimi- 

61 



AUTOMOBILE SELLING 

nary study of the prospects that he plans to visit on a cer- 
tain day, he should if possible time his visit to each of his 
prospects based on his knowledge of these people. It is 
best to see some people in the forenoon. Others can be sold 
easiest just after lunch. This suggestion has its dangerous 
side, in that some salesmen are likely to think that they 
should not call at all on a prospect except at a certain time 
of day, and not having other prospects to call on in the 
meantime, they may waste or fritter away their 
time waiting for that opportune time making up but the 
smallest fraction of the day. Most successful salesmen, in 
comparison with those who are less successful, work a 
greater number of hours in actual solicitation per day. In 
fact usually the best salesman is the one who works long- 
est, and sees the most prospects. The significance of the 
suggestion is that some prospective customers may be seen 
more readily in the morning than in the afternoons, while 
others may be more readily seen in the evenings than dur- 
ing the day. With this knowledge picked up beforehand 
the salesman may find it possible to map out his trip or call 
schedule so as to bring the most effective results. 

Attitude of salesman towards prospect. — Having de- 
cided upon the time to call, the salesman should start out to 
see his prospect with the idea that he will want the car he 
has to sell as soon as he understands the service that he can 
get from it and the terms under which it can be bought. 
In offering the car and his proposition to a prospective cus- 
tomer, the salesman should remember that the prospect will 
be benefited just as much as, if not more than, the salesman. 
Usually it is not best to use a card unless absolutely neces- 
sary especially at the first call. A prospect will take the 
card and look at it rather than at the salesman. If the sales- 
man can get the attention of the prospect to himself and 
what he has to say right at the start, the prospect is more 
likely to continue to hear the entire proposition the salesman 

62 



HIGH LIGHTS ON AUTOMOBILE SALESMANSHIP 

wishes to make. Obviously the salesman should look his 
prospect straight in the eye while stating his opening re- 
marks. 

If the prospect is busy the salesman should not interrupt 
for more than a moment. It will be well however to let the 
prospect know that he is there and to wait patiently until 
the prospect has finished his business. 

Courtesy. — Every salesman should be very careful that 
he does not offend in the slightest detail. He should be sure 
that every impression that the prospect gains from him is 
right in regard to such matters as manner, his voice, his 
salutation, his appearance, and so on. 

Whether to shake hands or not is a matter concerning 
which no rule can be stated. In small towns, particularly 
in the towns in the South and West, it is customary to shake 
hands, and the salesman who does not may be considered a 
snob. In the larger cities where prospects are as a rule 
busier, or think they are, and who see more salesmen, hand 
shaking is not so common. A salesman must judge for him- 
self what to do. If hand shaking is the thing to do, it 
should be done whole-heartedly, and as gladly with the dirty 
hand of a mechanic as with the clean trim hand of the 
chief of an office. It should be done cordially or not at all. 

Get on a common plane with prospect.— The salesman 
should aim to put himself on the same plane as his prospect 
as quickly as possible. Sometimes a very brief common- 
place remark about business, the crops, the weather, or what 
not, particularly if the remark is optimistic, will prove help- 
ful, particularly in country territory. 

In a country town surrounded by farmers there is con- 
stant interest, such as most live city people can scarcely 
understand, in such things as weather, crops, roads, and so 
on. Good weather, good crops, good roads, mean pros- 
perity to all in the country town. 

The salesman should aim to make the opening remark 

6 3 



AUTOMOBILE SELLING 

pleasing to his prospect. He should refrain from referring 
to matters that are not pleasant. If the weather is bad, he 
should not add to his prospect's misery by referring to it 
If business is bad the salesman will make a mistake to ask 
how business is. The salesman should be brief, he should 
use tact, he should aim to get through his business as quickly 
as possible. 

Introductory remark. — In introducing himself, the stand- 
ard method for the salesman is to tell his prospect frankly 
who he is, and what he represents. That is far from being 
the only method however. Some good salesmen open their 
conversation with a prospect by some remark or other, as 
for example, "If you had used a car this morning you could 
have saved three quarters of an hour of your time. ,, Usu- 
ally, if well founded, a remark to the effect that increases 
can be made in earnings, or that savings can be made in 
expense, may be interesting ways of opening the conversa- 
tion. 

Get prospect to say "Yes." — The salesman should make 
every effort to get the prospect into a receptive mood to- 
wards his proposal. He should aim to secure agreement 
with the prospect in his opening remark. Get him to say 
"yes," rather than "no." Aim to get him into yes-saying 
mental attitude. As a rule it is poor strategy to start the 
prospect out saying "no." It is much easier to close a deal 
with a man who has been giving his affirmation and saying 
"yes" to everything that you have proposed up to getting the 
order, than it is for a man who has already disagreed and 
objected and said "no" several times. 

Manner of sales talk. — The salesman should be deeply 
interested in what his prospect has to say but should watch 
for his opportunity to continue his own proposition. In a 
general way the salesman should agree so far as possible 
and never argue with a customer. In manner he should 
be earnest, in his sales talk he should be frank but pleasant 

6 4 



HIGH LIGHTS ON AUTOMOBILE SALESMANSHIP 

and his eyes should indicate the same interest in his propo- 
sition as his speech. Joking in a sales talk is entirely out 
of place. It destroys the atmosphere of sincerity, which 
the salesman must convey if he is to make a sale, and joking 
is as likely to create opposition in the mind of a prospect 
as it is to gain favor. 

Watch prospect's expression. — A skillful salesman al- 
ways watches his customer's expression carefully and on 
the basis of what he reads in the customer's expression, he 
adjusts his own line of thinking and sales talk. In fact the 
chief difference between an expert salesman and a poor 
one is that the expert can more quickly read what is going 
on in his prospect's mind and thereby guide what he has to 
say to suit the conditions that he sees arising. The expert 
salesman doesn't wait for the prospect to tell him that this 
or that is not desirable. He sees in advance that objection 
or disagreement is coming and wards it off either by chang- 
ing the subject or by answering the coming objection before 
it has been definitely raised. 

Making appointments. — If the salesman cannot place his 
proposition before his prospect at the time of his first call, 
he should, if possible, secure an appointment for a later visit, 
and if the prospect names the time of the next appointment 
it is usually a good plan for the salesman to write it down 
on a card or in a book in the prospect's presence. Some 
salesmen have a good plan of writing down the time of the 
appointment on a card and then handing the card to the 
prospect. If the appointment is made several days off the 
salesman should write the prospect in advance of the call 
reminding him of the time and stating that the writer will 
call. When calling by appointment the salesman should 
remember that he has the right of way and that it is his 
duty to get down to business at once. At this time he should 
waste no time on talk in other lines unless the prospect 
starts the conversation in these lines. 

65 



AUTOMOBILE SELLING 

Stating the proposition. — When the salesman finally has 
an opportunity to place his proposition before his prospect 
he should make sure that he has the prospect's undivided 
attention, and then should state his proposition as clearly 
and completely as possible. He should not assume that the 
prospect knows anything about the car, if he did he would 
be an owner of one already. Naturally the point of his 
first interview in most cases will be to get the prospect to 
agree to come to the automobile store to have the car demon- 
strated to him. 

After the prospect has come to the automobile dealer's 
place of business, the actual sales talk should be presented. 
This should include the sales points enumerated in another 
chapter. As a rule it is wise to use rather conservative 
statements at the start of the sales talk and to close with 
the strongest point. Sometimes, however, it may be neces- 
sary to make a strong statement at the beginning in order 
to attract the prospect's attention. But the latter is a much 
overworked method. 

Study the methods of successful attorneys. — A good 
salesman usually follows the method of a successful attor- 
ney in presenting his case to a jury. This method consists, 
first, in a statement of what is to be proved; second, in a 
presentation of the evidence, point by point; and finally a 
summary of all the points brought out. The lawyer then 
closes with a peroration in which he makes the suggestion 
to the jury to decide in his favor. The automobile sales- 
man would do well to study the methods of successful at- 
torneys for successful attorneys are really successful sales- 
men. The winning of a case before a jury is nothing more 
nor less than the same sort of salesmanship that the auto- 
mobile salesman has to use every day. 

Be sure the prospect understands. — The salesman should 
watch the prospect to see that he understands. It will not 
do merely to ask him if he understands, because in this case 

66 



HIGH LIGHTS ON AUTOMOBILE SALESMANSHIP 

most prospects will easily answer that they do, even when 
they do not. An average prospect will not admit that he 
does not understand. The salesman should make sure that 
he does. He should not be afraid to repeat if he thinks this 
is necessary. But the repetition should, if possible, change 
the form of the expression. The salesman should test the 
prospect from time to time to see if he is in agreement with 
him. For example, after he has been told of some construc- 
tive detail, in the car, the salesman can say, "Don't you 
think this is an excellent point?" If he answers "yes," the 
salesman may know that he is making progress. Of course 
throughout the demonstration the salesman should aim to 
ask questions that will draw "yes" from the prospect. 

There is strategy in the arrangement of the sales points 
that are to be presented to the prospect in a sales talk. The 
salesman should make up his mind in advance in what order 
he will present them and just what he will say about each. 
He should have his points at his tongue's end. Mere mem- 
orizing is not enough. He should know his points and have 
the necessary vocabulary to tell about them to suit any 
set of conditions. 

Appeal to all of the senses. — The salesman must keep 
in mind that the sale is finally made up in the mind of the 
prospect. And therefore the mind must be reached. This 
can only be accomplished through the senses — eyesight, hear- 
ing, touch, and so on. The automobile salesman must ap- 
peal not only through the eye and through the ear but also 
through the sense of touch. Let the prospect handle the 
various parts of the car. Details should be pointed out. Let 
the prospect hear about them. Let him see them. Let 
him handle them. Take no chances. Get the ideas into 
your prospect's mind in every possible way. 

Appeal to "you."— At all times in the sales talk the sales- 
man should appeal to his prospect's interest. He should 
keep the "I" attitude out, and the "YOUf attitude forward. 

67 



AUTOMOBILE SELLING 

The proposition is for the prospect and not for the sales- 
man. The prospect must be benefited. The salesman must 
show the prospect how he will be helped by owning the 
car. Use the pronoun "YOU" frequently and the "I" sel- 
dom. 

Interruptions. — If for any reason the sales talk is inter- 
rupted, the salesman should show no impatience. If many 
minutes intervene before the prospect can return to the 
proposition that the salesman is trying to make, the sales- 
man will do well to review the last point before taking up 
another. Many a sale is lost because of interruptions during 
which both the prospect and the salesman cool off and lose 
their interest. So extra effort must be made to keep up 
interest under trying circumstances. 

How to close the sale. — When the sales demonstration 
has been made and the prospect has become acquainted with 
the principal points of the car and may be presumed to 
understand the proposition in a fair way and at the same 
time has exhibited an intelligent interest leading the sales- 
man to believe there is some prospect of his wanting to 
own the car, then the salesman should begin to try to close 
the sale. The usual and best way followed by most experi- 
enced salesmen when closing is to summarize the main 
points already brought out as forcibly as possible. Some 
salesmen write them down point by point on a blackboard or 
chart or sheet of paper for the prospect. Then they tell 
the prospect what his gains will be and then pause for a 
moment and watch for the prospect's reaction. If the pros- 
pect begins to ask about prices and terms the salesman may 
know that he is thinking business. 

Courage. — A salesman needs courage in closing. If the 
demonstration has been complete and all objections an- 
swered he should assume that the sale is made and in most 
cases should get his order blank and start to write, perhaps 
asking at the same time, what time the prospect would like to 

68 



HIGH LIGHTS ON AUTOMOBILE SALESMANSHIP 

have the car delivered, or what equipment the prospect 
would like if there is a choice in this matter, or similar ques- 
tions requiring the customer to express himself on the prop- 
osition. It is usually better to get the prospect to decide 
on some small matter, such as called for in suggestions like, 
those made above, than it is to ask point blank if he cares to 
buy the car. 

Persistence. — The salesman should be persistent, he 
should not quit just before the prospect decides, as many of 
them do. The prospect should be given time in many cases 
and this is where the salesman needs patience and good hu- 
mor. Most salesmen are weak in their ability to close sales 
successfully. Part of this is due to lack of persistence. 

Salesmen must inspire confidence. — It should be remem- 
bered throughout that the prospect's confidence in the sales- 
man is what makes it possible for the salesman to make the 
sale. The prospect must believe what is told him before he 
will accept the conclusion to which the sales points pre- 
sented are supposed to lead. Therefore, the salesman 
should do everything to make it easy for the prospect to 
believe. His points should be made clearly, the prospect 
should be shown concretely, he should be led to see for 
himself. The salesman's attitude and action should inspire 
confidence. The salesman should show that he means what 
he says, not by loud talk but by quiet forcibleness and earn- 
estness. A salesman's reputation for reliability is a great 
asset. Therefore he should be careful to keep his promises 
and having made a promise, to keep it to the letter. He 
should do more than what he agrees to do if it is a matter 
of personal service. His record should speak for itself. 

After the sales talk is finished and some decision has been 
reached, the prospect should be thanked whether he is sold 
or not. If he has decided to take the car he should be 
thanked for that. If he has not decided, he should be thanked 
for his time. The simple words, "thank you," are more 

6 9 



AUTOMOBILE SELLING 

potent good-will builders than any other single item that 
might be named. 

After the prospect has actually decided to buy the car 
then is the time to show him in detail how to use it and how 
to take care of it. 

Selling women. — Women have something to say in nearly 
every sale of passenger cars. Women have the deciding 
voice in the majority of sales. An automobile salesman will 
surely fail who does not fit his sales plans to this condi- 
tion. The sales points that appeal to men do not always 
appeal with equal strength to women. 

For example, women do not as a rule interest themselves 
in the mechanical details. You hardly ever see women in- 
terested in the chassis as you see men studying it. A woman 
as a rule gives more attention to the individuality, the 
beauty, the style, the color, the upholstery and the finishing 
touches of the car. This is true for the reason that these 
things appeal more strongly to a woman than to a man. 
Again, she is very much interested in the effect the car will 
produce in the minds of her friends when they see her 
riding in it. Her decision often depends upon what she 
thinks will give her the best standing among her friends. 

If the woman "in the case" plans to drive the car herself 
she will be particularly interested in noting how easily the 
car may be controlled and managed. 

When a man and his wife both appear at the demonstra- 
tion the salesman must use his best judgment as to whom to 
talk the most. Certainly he should keep the attention of 
both. When in doubt, most salesmen talk to the woman. 
If she can be fully sold, they feel they are more sure of 
getting the assent of the man. Women generally have the 
final decision on color, lines, and so on even if men decide 
on the make of car. 

However these suggestions must be interpreted carefully. 
Since the war it has been noted that a great many women 

70 



HIGH LIGHTS ON AUTOMOBILE SALESMANSHIP 

are interested in mechanical details of the car. They seem 
to be flattered by having salesmen explain mechanical pro- 
cesses to them. There are more women now than ever 
before who really understand and take an interest in me- 
chanics. 

Finally, even if the woman decides, the salesman should 
not forget that the husband furnishes the money and likes 
to think that he is getting full credit for that much. 

Having to sell both men and women is what makes auto- 
mobile salesmanship complicated, but at the same time the 
most interesting kind of salesmanship in the world. 



71 



CHAPTER X 
DEMONSTRATING THE CAR 

The object in demonstration is to get the prospective cus- 
tomer to see the advantages of buying the car you have to 
sell, his need for motor transportation. To accomplish 
this object the salesman must plan to get certain definite 
ideas about his car over to the prospect. The sales points 
will vary somewhat from car to car, but a general summary 
may nevertheless be helpful. 

The sales points of the car. — The points that interest the 
prospective customer about a car are, respectively: 

Its service 

Ease of operation 

Comfortable riding qualities 

Safety 

Durability 

Whether possible to keep in order easily or not 

Beauty and style 

Costs of operation 

Service of car. — The service that the car can give is the 
fundamental consideration. Consequently in selling a car 
the salesman will point out and elaborate on what the car 
will do for the customer in the way of saving his time, his 
labor, his money, and so on. From another angle the cus- 
tomer may be shown the pleasure, the satisfaction, and the 
sense of freedom that the use of the car will bring. But 
whether the car is to be used for business or pleasure the 

72 



DEMONSTRATING THE CAR 

greatest possible emphasis should be placed upon the point, 
"It will save your time." 

Ease of operation. — The customer is interested in the 
ease of operation of the car, the ease with which it may be 
started, how the power can be controlled, how to stop the 
car, how to change speeds, how to apply the brakes, and 
how to apply the emergency brakes. He is particularly in- 
terested to know how all of these operations can be per- 
formed in the slightest amount of time and with the least 
possible expenditure of thought and energy. He is inter- 
ested to know that the means of performing all of these 
things, the buttons, switches and levers, are very close at 
hand. 

Comfortableness. — Most customer's may be presumed 
to be interested in the comfortable riding qualities of the 
car. So the salesman should demonstrate the cushion qual- 
ities, the height of the seats, the angle at which they are 
inclined, how it feels to sit in the car, whether the passen- 
ger will be fatigued after a long journey or not, the smooth- 
ness with which the car rides over rough roads, and so on. 

Safety. — Every prospective customer will be interested 
in the safety of the car, therefore it will be of interest to 
demonstrate clearly how quickly the car may be stopped if 
necessary, what the brake construction is, whether it can be 
relied upon under all circumstances, and whether the car will 
tip over or not. Here the salesman has an excellent oppor- 
tunity of making a sales point based on the fact that the car 
has a low center of gravity and that it is very difficult for 
it to tip or roll over. The prospective customer will also be 
interested in the steering gear, its ease of operation, its 
quick responsiveness, its fool-proof construction, and so on. 

Durability. — One of the chief deterrents in most pros- 
pects' minds, particularly among those who have never 
owned cars before, is the belief that a car soon wears out 
or goes to pieces. This belief is based on observation of 

73 



AUTOMOBILE SELLING 

cars as they used to be a few years ago. Owners then fre- 
quently traded off their cars or discarded them after a year, 
or at most after two years, of service. These prospects 
have not kept up their knowledge with the procession of 
improvements in the automobile field. They do not know 
how durable the modern car is. They do not know that the 
standard car of to-day can be bought with the view of using 
it for several years. It is the business of the salesman to 
teach this. 

Not easily damaged. — The customer is interested in 
knowing whether or not the car may be damaged easily. It 
is unsafe to urge that a car will stand misuse. Prospective 
users should be taught to take the best possible care of a 
car rather than to form habits of carelessness. But there 
are many prospects who perhaps would become buyers of 
cars if they were not fearful of the expense for repairs 
due to injuries. A well built car will stand a great deal of 
misuse if it has to. 

Easily kept in condition. — The customer is interested in 
knowing whether keeping the car in order will be a difficult 
matter or not, how it may be kept clean and fresh looking, 
how much or how little labor it requires to keep it in order. 
It will help in many cases to show the prospect how slight 
these problems are, and how, with a little planning, they 
need be no burden at all. 

Beauty and style. — The beauty and the style of the car 
adds to the enjoyment of its service. The automobile is 
not only a great convenience and time saver, it is an orna- 
ment. It is a work of art. It thereby adds to the satisfac- 
tion and enjoyment of life. Let this point sink into the 
prospect's mind. Get him to see the artistic points about 
your car, the nicety of its lines, the elegance of its fittings, 
and its attractive appearance, both when standing still and 
when in motion. These added features of the car are what 
sell it. 

74 



DEMONSTRATING THE CAR 

Cost of operation. — Finally the customer is interested in 
costs of operation, as has been pointed out in a previous 
chapter, what it will cost for gasoline, what it will cost 
for oil, what will be the tire cost, what will be the up-keep 
cost, etc. The first three of these items are directly pro- 
portional to the amount of mileage that the prospective cus- 
tomer runs. The last is a matter of time as well as of use. 
A car owner who runs his car but two or three thousand 
miles a year will naturally have a low cost for gas, oil and 
tires, while the one who runs his car ten or twenty thou- 
sand miles a year will have a high cost. It may be possible 
to point out to the prospect who is questioning the economy 
of the car that by careful driving and use, the normal costs 
may be greatly reduced. Probably the greater part of the 
expense incurred by most car owners is inexcusable waste. 

Not all customers alike. — Not all customers are alike, 
therefore all of these points will not have the same import- 
ance in all cases. To one, the service that the car can render 
in a business way will be the most important consideration. 
To another, its convenience and comfort will be the lead- 
ing item. To a third, the car as a means of relaxation and 
getting away from business will be the point of emphasis. 
To a fourth, the ease of operation will be the turning point 
in arriving at a decision to buy. 

Car saves time. — The service of the car is the funda- 
mental reason why it should be purchased. The main point 
in the service of the car is that it saves time. The salesman 
needs to emphasize this in every possible way to his pros- 
pect, "It will save you time." 

We all know that a draft due 60 days hence is not worth 
its full face value at present. We know that we must pay 
interest for the use of money, but we are not as a nation of 
business men so fully aware of the meaning of time in the 
operation of production and distribution of goods. The 
most significant movement in modern business methods is 

75 



AUTOMOBILE SELLING 

that of clearly bringing out the importance of turnover and 
of balancing costs against time in our computation of pros- 
pective profits or income. We have heard much of our 
wastefulness and the need of conservation, but we are only 
beginning to realize that there is no waste so enormous and 
so expensive both to the nation and to individual business 
as the waste of time. 

The automobile is the one great outstanding invention of 
this era for the economizing of time. 

The saving of time is important in every direction. It is 
as important in our leisure as in our business. One thing 
that the war taught was the grim philosophical truth that 
life is uncertain and short, and that the way to live is to 
live from day to day. Satisfaction in living must come from 
continuous daily satisfactions rather than by waiting for it 
to come all in a lump at some far off distant day. The auto- 
mobile ministers to this philosophy. It gives enjoyment 
in its use. It takes the rider with a minimum waste of time 
from where he is, to where he wants to be. It helps its 
owner to master his environment. 

Demonstrating the car. — Usually the demonstration of 
the car begins at the dealer's place of business. In some 
cases it may be best to conduct the demonstration at the 
prospect's place of business or home, but the best place to 
sell a car is undoubtedly in the dealer's place of business. 

Precautions. — Before beginning a demonstration either 
of a new car or one used for demonstration purposes, the 
salesman should assure himself that the car is in good order. 
Take no chances on this. Look over the car to see that 
it is clean and inviting to the prospect. A demonstration 
car should ordinarily be a new car, but very few automobile 
dealers find that they can use a car for demonstration pur- 
poses more than one season. In fact some of them use the 
demonstrator for less time than this. In rare instances, it 

7 6 



DEMONSTRATING THE CAR 

appears, some dealers can, by handling the car very care- 
fully, continue its use into the second season. 

When the car is shown to the customer, an effort should 
be made to get the customer to see the car as a whole first, 
to note its outline and its design ; and, while the customer is 
looking at the car from a distance, the salesman may begin 
his sales talk by giving its general dimensions, the length of 
wheel base, its power, and so on. 

As soon as possible after this first view the salesman 
should try to get the prospect, particularly if it is a man, into 
the car and into the driver's seat behind the wheel. When 
the prospect has been comfortably seated the salesman may 
point out to him the various features easily seen from the 
driver's seat, such as the ease of operation, the readiness 
with which all of the levers can be reached, and how easily 
the car can be controlled. In this way the imagination of 
the prospect can be exercised. Nearly every prospect is 
stirred by the pleasure of knowing that the machine beneath 
him will respond to his touch. There is a sort of enchant- 
ment in being able to control so easily a thing so powerful 
as an automobile mechanism. 

Next, the prospect may be shown the comfortable riding 
qualities of the car, the cushions, the height of the seats, 
the inclination of the backs of the seats, and so on. It may 
be a good plan to show the prospect the cushion construction 
in the tonneau, and the roominess and provisions for the 
comfort and convenience of the rider. The salesman should 
outline and emphasize the exclusive features of the car that 
he is trying to sell. It is impossible to enumerate such fea- 
tures here since these differ from car to car, but it is highly 
important that the salesman should mention these significant 
points or the result will be that he merely sells automobile 
transportation in general rather than his own particular 
car. 
- After the prospect has had an opportunity to examine the 

77 



AUTOMOBILE SELLING 

car in detail and to note its finish, its ease of operation, its 
comfortableness and safety, the next step logically would 
be to give him a ride in the car or one like it. 

Demonstrating during stormy weather. — If the weather 
permits it, the top, if the car has one, should be thrown back 
so that the prospect may have an unobstructed view on the 
demonstration trip. When an appointment has been made 
for a demonstration trip, it is well to go on with it even 
if the weather is not favorable. If a closed car is used for 
the purpose the demonstration may be made very effective 
by showing what the car will do on a stormy day. In fact, 
one of the best times to demonstrate a car is during bad 
weather or during the winter time, since most people who 
are not familiar with the use of a car think that bad weather 
precludes its use. There are a great many people who 
believe that cars cannot be used during the winter. This 
is a fallacy that automobile dealers and their salesmen need 
to overcome. By demonstrating the car in stormy weather, 
or when the streets and roads are snowy, wet, or muddy, 
prospective customers can be educated on the use of cars 
not only during good weather but during bad weather as 
well. 

Make the most of mishaps. — In the demonstration of a 
car every precaution snould be taken to prevent any chances 
of anything that might lead to mishap. The car itself 
should be properly overhauled before use. There should be 
a sufficient amount of gasoline in the tank. There should be 
oil where needed. The tires should be in good condition. 

The driver should not be permitted to speed the car, not 
only in order that there may be no possible chance of acci- 
dent, but also because prospective customers who have not 
themselves driven or owned cars are likely to grow nervous 
if the car is driven too fast. 

If a mishap does occur, as it sometimes will in the middle 
of a demonstration, the salesman or demonstrator should 

78 



DEMONSTRATING THE CAR 

attempt to make the most of it in a favorable manner. For 
example, if a tire blows out, a skillful salesman will invite 
the prospective customer to see just how he takes off the 
old tire and puts on a new one, with a remark that, 
"These things do sometimes happen and one might just as 
well know what to do in an emergency of this kind." 

When to talk price. — After the car has been properly- 
demonstrated to the customer, then it is time to speak of 
its price and terms of sale. Ordinarily, however, the 
prospect inquires the price of the car long before the 
demonstration is completed. The best way to handle this 
situation seems to be to give the prospect a definite an- 
swer concerning the price whenever he asks for it, but to re- 
turn as directly as possible to the sales story and try to avoid, 
until that time, any discussion as to whether the price is too 
much or not. 

As already indicated in a number of places, the salesman 
can impress his prospect best by pointing out the obvious 
features of the car and the services that it performs, rather 
than its mechanical details. The mechanical construction 
of a car exists only and solely for the purpose of fitting it 
to perform the services. 

How to prove sales points. — There are two ways in 
which the salesman can prove the sales points about the serv- 
ice of the car to his prospect. One is by reference to the me- 
chanical construction of the car showing that because of the 
construction, in such and such ways, the service that he 
describes can be delivered, and the other is by reference to 
the use the car is already delivering to other owners. Most 
customers are interested in what other car users are getting 
out of their cars, and for this reason, if the salesman is well 
equipped with knowledge concerning the number of cars in 
use, of the make that he is selling, and the statistics of ad- 
justment (if they are available), together with information 
concerning the use of his car in difficult places, as, for ex- 

79 



AUTOMOBILE SELLING 

ample, in endurance runs, and in all classes and kinds of ter- 
ritories and roads — this information can be put to good use. 
For many prospects the testimonial is the best proof of a 
sales point. Every salesman should be equipped with testi- 
monials, and with names of present owners, if possible, 
who may be used as references on the performance of the 
car. 

The best type of testimonial on cars in use, probably, is 
that concerning cars actually used in near-by territory. 
Mention of the car owners by name, particularly if these car 
owners are leading people in the community, is generally 
effective. Satisfied users are the best advertisements for 
any kind of merchandise and particularly automobiles. The 
owners of cars not only tell other people of their satisfac- 
tion but dealers and salesmen may usually freely refer pros- 
pective customers to satisfied owners for information. 

Testimonials and references have always proved effec- 
tive in sales demonstrations and no salesman of automobiles 
can afford to overlook their use in his line of business. 



80 



CHAPTER XI 
OBJECTIONS AND HOW TO MEET THEM 

No matter how well the sales talk may have been pre- 
pared, and no matter how well the salesman may have pre- 
sented it, it is almost certain that with most customers there 
will be objections arising which the salesmen will need to 
be able to answer in a satisfactory way. 

Sizing up the objection. — The first thing that the sales- 
man should consider when confronted by an objection is 
whether the prospective customer who has raised the ob- 
jection is really in earnest about it or not. There are cer- 
tain objections which may best be handled by ignoring them, 
particularly if the prospect merely raises it for the purpose 
of testing the salesman rather than in the hope of clearing 
up his own mind about the matter. The best way of han- 
dling the insincere type of objection is by changing the sub- 
ject as quickly as possible. 

Then the salesman should also assure himself that the 
objection raised is the real objection and not merely a 
superficial one. Customers sometimes conceal their real 
objections and explain their hesitancy by raising an insig- 
nificant point. Under such circumstances a salesman is 
merely wasting his energy and talk by trying to answer the 
obvious or superficial question raised by the objecting pros- 
pect, while the real objection remains untouched. 

If the objection is a sincere one, then it deserves the most 
sincere attention of the salesman. 

Meet in advance. — Experienced salesmen agree that the 

81 



AUTOMOBILE SELLING 

best way to answer a real objection, if they foresee its com- 
ing, is to answer it in advance. If the prospective customer 
is permitted to voice his objection the very fact that he has 
expressed it gives it added strength in his mind, and it 
thereupon becomes more difficult to answer than it other- 
wise would. 

Don't contradict. — It is best never to contradict in an- 
swering an objection. Clever salesmen agree with the ob- 
jecting prospect as far as possible, and then raise some ex- 
ception causing the prospect to get a new slant on the 
matter with the hope that this may undermine the objec- 
tion. The following are some of the common objections, 
with suggestions on how to meet them. 

Too busy. — The commonest objection met by most sales- 
men on seeking interviews with prospects is that the pros- 
pect is "too busy" to talk with the salesman. When the 
prospect makes this point the salesman should at once try 
to secure an appointment for a later date, and this can be 
effectively arranged in most cases by actually suggesting a 
later time, as for example, "How would 2.30 this afternoon 
be?" or, "Very well, but it will take me only seven minutes 
to tell you our proposition," or, merely asking, "What time 
shall I call?" 

Price too high. — After the demonstration, the most fre- 
quent objection made by prospective customers is, "your 
price is too high." In answer to this the salesman may 
reply somewhat as follows: 

"The price of all standard cars is based upon the mate- 
rials and cost of manufacture. There are other cars that 
cost less and therefore sell for less, but in the automobile 
field the same as in every other, you get just about what you 
pay for. The Blank car is sold at just about as low a price 
as a car of this quality can be sold. Competition is very 
keen in the automobile business. Inflated prices could not 

82 



OBJECTIONS AND HOW TO MEET THEM 

possibly succeed. We possess every advantage in manufac- 
ture and our prices are as low as they can be." 

"It isn't what you pay, but what you get for what you 
pay, that counts. You want service. That is what this car 
is built to deliver and far in excess of what may be ob- 
tained from most cars. If our price seems high to you at 
first, remember that it is for the exra built-in qualities in 
the car that you are paying. ,, 

''There are cars sold for less money but none with the 
quality of giving the service behind them that this car has. 
Don't you think that the margin in price between our car 
and the one you have in mind is a low price to pay for the 
added security or quality or the elegance you get when you 
buy ours ?" 

"There are cheaper cars than ours. Ours is not a cheap 
car. It is not a high priced car. Look at it. See the way 
it is finished in every detail. This perfect finish and good 
appearance is due to the fact that we employ the best skilled 
workmen and use the most perfect equipment that it is pos- 
sible to secure. By this means we get a perfect car in every 
detail." 

The salesman may enumerate sales points that he has 
already gone over to give the prospect an impression of 
the number of excellences of his car, and thus make him 
forget about the price. 

Can't afford it. — Another objection commonly met is, 
"I can't afford it." In reply to this objection the salesman 
must prove its economy by showing how the prospect can 
put it to use to save time that may be utilized in adding to 
the prospect's income in other ways. It may also be pos- 
sible to describe in reply to this objection the easy terms of 
payment that the firm may be in position to offer. 

Sometimes the prospect may say, "I don't want a car now, 
but may buy one later." When the prospect holds this 
thought in mind perhaps the best line of reasoning to fol- 

83 



AUTOMOBILE SELLING 

low is to inquire whether he can afford to put off the pur- 
chasing of a car and to follow up this by pointing out pre- 
cisely what he will lose if he postpones the purchase, em- 
phasizing those particular details which apparently im- 
pressed him most in the first part of the sales demonstration. 

Objections to technical details. — If a prospect objects 
"Your car is too light," or "too heavy," the reply may be 
made, that it is not the weight of the car that gives it its 
service qualities or its excellence, that the weight is but an 
incident of the construction. If the car is a light one, points 
may be made in its favor on the saving of gasoline and tires. 

Sometimes the customer objects to the service policy 
of the company, in this case one line of reply is as follows : 

"You pay for what you get. More service could be given 
but then a higher price would have to be asked. If you are 
a careful driver you would have to contribute in your 
higher price to cover the service that would have to be given 
to the poorer driver's car." 



8 4 



CHAPTER XII 
ADVERTISING TO SECURE BUSINESS 

Why advertise. — The object of advertising is to reach 
out and bring in prospects. Its purpose is to supplement 
personal salesmanship. No salesman can see more than a 
few prospects each day. It takes time to educate each 
prospect on what you have to offer him. If any method will 
search your territory for prospects and give them a start 
in the sales proposition you wish to make to them, you will 
save the labor of your salesmen. This is precisely what 
advertising does. It paves the way for easier personal sell- 
ing. 

Persistent advertising is a need of every retail automobile 
business. Not to use it is as bad as to run a car without 
lubricant. Advertising makes large scale business possible. 
If properly done, advertising helps to create confidence. 

It establishes reputation and thereby helps to bring in 
prospects who might otherwise go to competitors. It in- 
sures against competition. Most concerns sooner or later 
must meet keen competition. If there has been a confidence 
and reputation built up over a period of past time by per- 
sistent advertising backed by fair dealing, this competition 
may be much more easily met. 

Advertising develops good-will, and enlarges trade. A 
dealer who does not use advertising thereby shuts off one 
of the best methods of expanding his business. Even if he 
has but a small amount of capital, he should certainly set 
aside a part of it, for the purpose of letting people know 

85 



AUTOMOBILE SELLING 

who he is, where he is located, what he has to sell, and why 
people should buy from him. 

What is advertising. — Advertising in a large sense in- 
cludes everything that is done to attract trade. It includes 
good window display. It may very properly be considered 
as including the architecture and appearance of the building 
in which the dealer has his place of business. It includes 
the help that may be obtained from satisfied customers with- 
in the territory. More specifically, however, advertising as 
generally considered includes printed and written matter. 

It includes bill boards, road signs, circulars, booklets, cata- 
logs as well as advertising in newspapers and periodicals. 
In this chapter we shall speak for the most part of adver- 
tising in this narrower sense. 

How much to spend. — The first step that the automobile 
dealer needs to take when about to begin advertising is to 
decide on what amount, or about what amount of money, he 
intends to expend for advertising during the time for which 
the plan is to be made. Usually the amount expended is 
taken as some percentage of the sales that are to be expected 
or of the sales of the similar preceding period. Many pro- 
gressive concerns expend about 2% of their sales for the 
various forms of advertising. Others expend only i%, 
while still others expend 3 and even 4%. In this as in every 
other line of expenditure in the business, it is not what is 
expended, but what the concern gets out of what it expends, 
that counts. If the advertising is properly done it is prob- 
able that most concerns can spend at least 2% very profit- 
ably. 

The plan. — The next step is laying out a general campaign 
plan for the period for which the appropriation is made. 
Usually a year is taken as the proper amount of time for 
such general plans. It may not be necessary to outline in 
detail just what shall be done during each month, but some 
view of the year as a whole and what may naturally be 

86 



ADVERTISING TO SECURE BUSINESS 

thought of as a good thing to do during every part of the 
year should be considered in advance. Retailers of all 
classes who have made successes of their business, agree 
that if advertising is to be effective, it must be continuous. 
That is to say, a splurge now and then is likely to be so 
much money and energy wasted. If the effort is continu- 
ous, even if small, the results cumulate and that is what the 
dealer desires. 

When to advertise. — Since most cars are sold during the 
spring, probably the heaviest advertising should be concen- 
trated at, or just before, this time. But it is a mistake to 
advertise only at times when most people have been in the 
habit of buying cars. The car is an all year around conve- 
nience, and there is no reason why it should not be pur- 
chased in the fall, or any other time, as well as in the spring. 
The only reason that it is not so purchased is because deal- 
ers and salesmen have not yet begun to promote sales out of 
season, so called, in a systematic manner. Therefore the 
dealer should plan to advertise not only during the height 
of the buying season but at other times as well. 

If the dealer handles accessories and supplies, the adver- 
tising may alternate, emphasizing cars at one time and ac- 
cessories of various kinds at other times. To illustrate, 
advertising about New Year's time may push the winter use 
of cars and the sale of such accessories and supplies as the 
following : 

Foot warmers, tops for automobiles, robes, antifreezing 
radiator mixtures, etc. A month later, Lincoln's and Wash- 
ington's birthdays may be celebrated by the advertising of 
tools needed by automobile owners, such as jacks, winch sets, 
pliers, pumps, etc. 

These are things that the car owner will need, particu- 
larly if his car is not being used during the winter time, 
when he overhauls his automobile in the spring and makes it 
ready for summer use. During the later part of February 

87 



AUTOMOBILE SELLING 

and March the emphasis may be placed upon buying the 
new car or trading in the old car for a new car. There may 
also be advertised at this time such lines as tires, slip covers 
for the seats, new lights, improved parts, chains, and so 
on. Later on in the summer the emphasis may very well 
be placed on such items as camping outfits, touring acces- 
sories, etc. In the fall the advertising may be turned to 
such items as portable vulcanizing outfits, tire repair mate- 
rials, flash lights and lenses for the automobile lamps. Lamps 
and lenses become very necessary as the days grow shorter. 
Just before Christmas advertising may well be directed to 
the friends and relatives of the automobile owner prompt- 
ing them to purchase Christmas presents from among auto- 
mobile supplies offered by the dealer. 

Thus it will be seen that there is sufficient opportunity in 
an automobile dealer's stock to keep up a continuous story 
all the year around, something new every time, something 
that will attract the attention of the automobile owner and 
that will bring in profitable business for the dealer. 

Probably the advertising campaign should provide for 
something to go out to the people in the dealer's territory 
at least once a month and oftener if possible. 

Mediums to use. — The medium through which to con- 
vey the advertising story may vary from time to time. But 
certainly a live dealer with a fair territory should consider 
using his local newspapers, together with letters and road 
signs, at least, as leading ways of conveying his advertising 
messages. 

Newspapers secure the attention of the general public. 
Letters may be directed more specifically to prospect lists, 
road signs serve the purpose of calling the attention of the 
transient traveler, as well as helping to keep the name of the 
dealer constantly before the residents of the territory. 

Co-operation of all departments. — An excellent plan fol- 
lowed by some dealers is to make all of the advertising me- 



ADVERTISING TO SECURE BUSINESS 

diums used by the dealer tell the same story at the same 
time. For example, when an important story is conveyed 
through newspaper advertising, the prospect also re- 
ceives a letter covering this point, and the window displays 
in the dealer's place of business also display the merchan- 
dise advertised in newspaprs and by letter. Finally, the 
salesmen in the establishment are fully posted on the ad- 
vertising campaign so as to supplement the effort by special 
sales effort inside the store when prospective customers 
come in. To illustrate, not only do they sell the advertised 
goods to those who come in for them, but also, if a cus- 
tomer comes in for oil, gasoline, or for some other regular 
staple article, the salesman co-operates with the advertising 
by suggesting, "Mr. Blank, have you seen that we are ad- 
vertising electric automobile horns at the present time?'' 

If the customer happens to be in need of the article ad- 
vertised, the mere suggestion in this timely way by the 
salesman is sufficient to make the sale. Opportunities such 
as these should not be overlooked. 

Obviously such suggestions should not be made in a man- 
ner objectionable to the customer. But there can be nothing 
objectionable in merely calling attention to the fact that a 
certain article is being advertised in such and such papers 
as suggested above. If the suggestion is made in a sensible 
way it will meet with no objection. Making the suggestion 
can do no harm to the customers who are already pro- 
vided with the articles that are advertised and it is likely 
to make sales in cases where customers are not so provided. 

Care must be used by the dealer in selecting the local 
newspapers which are read by the people who are likely to 
furnish the best prospects for automobiles and automobile 
supplies. Furthermore study needs to be made of the cir- 
culation of the papers selected to determine which day or 
days are the best for advertising automobiles. To illustrate, 
on some days newspapers are more carefully read by women 

8 9 



AUTOMOBILE SELLING 

than by men. If the advertising is intended to reach the 
attention of women, then it should be placed in the news- 
papers on those days. These days are usually the ones in 
which the leading stores of the community advertise. Men 
as a rule are more interested in the advertising in news- 
papers on those days when special financial or business 
articles appear. Whatever the local newspaper conditions 
may be, they should be understood by the dealer before 
placing his advertising in the papers. 

Who should write copy? — As to the copy that is to be 
used, it should be some one's duty, preferably the manager's 
own business, to prepare the advertising that is to be placed 
in these newspapers. Writing advertising is a difficult mat- 
ter at best. Most concerns seem to agree, however, 
that the best results are obtained when the advertising is 
written just as a good salesman would talk, with this pro- 
vision, that each advertisement should confine itself to 
some one or a few simple points and not attempt to cover 
too much ground. The object of the advertisement, it 
should be borne in mind, is to attract attention and to se- 
cure interest for a brief moment in some point about mer- 
chandise that the dealer has to sell, and all advertisement 
writing aims to carry out this point. In a small concern, 
the chances are that no one is so well fitted to write the copy 
as the manager. There is no duty more important. Some 
of the most successful dealers, even in the smallest towns, 
spend a good deal of time in planning and preparing the 
advertising. They find that it pays. 

Letters. — Letters and circulars constitute the most spe- 
cific and direct form of advertising that an automobile 
dealer can use, but naturally, to be productive, require that 
the dealer must have the right sort of a mailing list. 

Something has already been presented in another chapter 
on the preparation of a list of prospects. The prospect 

90 



ADVERTISING TO SECURE BUSINESS 

list is or should be the mailing list. The prospect list or file 
may be classified in a variety of ways. 

As for example, those who are prospects for automobiles 
for business reasons, those who are prospects for cars for 
pleasure or recreational purposes, those who are already 
owners of automobiles but who should own new ones, and 
so on. Letters written to these various classes of prospects 
will naturally vary. By classifying them it may be possible 
to prepare form letters which may appear very much like 
personal statements. Considerable time can profitably be 
expended in the preparation of suitable form letters, where- 
as in the writing of an individual letter, if there are many 
letters to write as well as many other duties to perform, it 
may not be possible to give sufficient time to secure a good 
letter. 

In letter writing, as in advertising writing, the main point 
is to get away from formality and to write as a salesman 
would talk. It is also highly important that the letter should 
be legible, clean and neat looking. These qualifications give 
the letter an inviting appearance and help its chances of 
being read by the one who receives it. 

Road signs. — Road signs are usually very effective as an 
aid in securing trade from transients or tourists traveling 
through a dealer's territory. They are sometimes made to 
serve the purpose of indicating which direction and how 
far it is to the dealer's town, thus serving as guide posts 
as well as advertisements. To be continuously effective, 
however, it is necessary that the dealer should see that they 
are kept in good condition. At least once a year they 
should be renewed, repainted and repaired. Dilapidated 
signs are worse than nothing, they advertise by their ap- 
pearance just the quality that the dealers do not wish to 
have advertised. 

Manufacturers' aids. — Manufacturers of automobiles, 
tires, accessories, and producers of oils and gas, many of 

91 



AUTOMOBILE SELLING 

them at least, have very effective dealer's service depart- 
ments that can be put to good use by the dealer. The mate- 
rials prepared and put out by these concerns range all the 
way from window displays to copy for local newspaper 
advertising. The dealer will find much of this material very 
helpful. It is usually prepared by high salaried specialists 
and while some of it has occasionally been impractical in 
the past, as a general rule, it is growing better and better. 
It would be a mistake to overlook it. In fact some auto- 
mobile dealers have found that advertisements prepared 
and written in the car manufacturer's advertising depart- 
ment serve much more effectively than any they would have 
time to write themselves. 

The letters prepared by certain car companies for their 
dealers are most excellently done and can be profitably used. 
Booklets, pamphlets and circulars prepared by manufac- 
turers may also be used by including, from time to time, 
letters or circulars issued to the prospect list. Probably 
there should never be a piece of mail sent out from a deal- 
er's place of business, not even a monthly statement, with- 
out a bit or two of advertising included. In this way post- 
age is saved and some advertising value is gained. 

Most manufacturers are glad to co-operate with dealers 
in their advertising campaigns. If they are not they should 
be, and the dealer who will write about his plans to the 
manufacturers who supply him with goods, will frequently 
receive very valuable aid in a number of directions. 

Many of the leading manufacturers now advertise in a 
national way. Probably a considerable number of the 
dealer's own prospects are influenced in some degree by this 
national advertising. Therefore, whenever it is possible, it 
is usually profitable to tie up the local advertising with the 
national advertising. For example, many dealers use the 
full page "ads" appearing in the national magazines, suit- 
ably framed, in their window displays at the time those 

92 



ADVERTISING TO SECURE BUSINESS 

"ads" are appearing in the magazines. Sometimes dealers 
reproduce the "ads" appearing in national periodicals in 
their local papers, calling atention to the fact that they are 
the local representatives of the concerns doing the national 
advertising. In other cases, the dealers co-operate with the 
national advertising by telling the same story as told by 
the manufacturer so that prospective customers may be 
influenced both by the national advertising and the local 
advertising. It is also possible for salesmen to make use 
of the national advertising; in the first place, by familiariz- 
ing themselves with the arguments advanced therein and by 
using these arguments as a part of their own sales talk, and 
also by referring to the national advertising as a proof of 
the prestige of the car, or of the accessory offered for sale. 

How to cash in on national advertising. — A great deal 
of money is expended in national advertising, and the man- 
ufacturers would not expend these sums were it not for the 
fact that it helps to make sales. Therefore, if it helps the 
manufacturers to sell, it should also help the dealer to sell, 
and the dealer should line up his own campaign so as to 
make the greatest possible use of this aid. 

Finally the dealer should not overlook the possibilities of 
obtaining publicity in the local papers. Whether he adver- 
tises or not, but certainly if he does advertise, the local 
papers are quite likely to want news about the great auto- 
mobile industry which the dealer represents. The story of 
its growth is one of the biggest romances of all history. 
There is nothing more interesting in the business world than 
the development of the automobile industry. So the dealer 
who will make use of this opportunity will have the chance 
to obtain considerable space in which the public may be told 
of what is going on in the automobile world, thereby help- 
ing to increase the general interest in and appetite for auto- 
mobiles, and at the same time keep the public thinking about 
his place of business in the community. 

93 



AUTOMOBILE SELLING 

When the dealer obtains a new shipment of automobiles 
it is quite certain that the local papers will be delighted to 
make a news item of that fact. When a new salesman is 
employed, when a new department is established, when 
some new accessory or automobile device is placed upon 
the market, these are legitimate news items that will inter- 
est the newspapers and the reading public and help the auto- 
mobile trade at the same time. 

Free publicity. — In publicity, as well as in advertising, 
the car manufacturer may be able to help the dealer, and 
the dealer should not be overmodest in his requests for such 
information. At the same time he should not overlook the 
value of forming an acquaintance with the editors of the 
papers in a way that will make it possible for him to tip off 
to them important news items concerning the happenings 
in the automobile field. 

The following subjects will suggest the possibilities of 
publicity in local papers to which the automobile dealer can 
connect his name : local registrations, state registrations, na- 
tional registrations, attendance of dealer at national auto- 
mobile meetings, performance tests of automobiles, per- 
formance tests of tires, development of road building, auto- 
mobile racing, automobile shows, purchases of automobiles 
by local people, new developments in automobiling, the story 
of the development of automobiles, and comparisons of 
automobiles at present with those of twenty years ago. 

Similarly stories may be worked up for various acces- 
sories, tires, gas and oils. 

Automobile shows. — One of the best forms of advertis- 
ing of a special nature is the local automobile show. In 
co-operation there is strength. If the automobile dealers 
of a community will get together, secure the help of their 
car suppliers and arrange an automobile show, secure the 
right sort of quarters and prepare an interesting program, 
almost without fail a crowd of interested people are at- 

94 



ADVERTISING TO SECURE BUSINESS 

tracted. The interest in automobiles is heightened, a large 
number of new prospects are developed and some sales may 
be effected at that time. If properly managed an automobile 
show is as effective a sales plan as any that can be devised. 

Through the means of running an automobile show, a 
great deal of publicity can be obtained in the local papers 
of a nature that will help develop the interest in automo- 
biling, and not only are the sales in automobiles increased, 
but in accessories as well. 

An automobile show is a practical possibility not only for 
large cities but for small towns as well. A show can be con- 
ducted in any center where several cars are sold, no matter 
how small. 

The way to start an automobile show, the way it has been 
done in several cases, is as follows: 

First, let some live dealer, let us say the reader of this 
book, take the initiative and talk the thing over with the 
other dealers in the town. 

Second, it may be best to begin by organizing an Auto- 
mobile Dealers* Association as the means of carrying out 
the project Such an association can be very helpful to 
the individual dealers in a number of other ways as well 
as the means through which to run the show. 

Third, a committee of the A. D. A. should be appointed 
to determine when and where the show can be successfully 
held. If there is an armory, a big storehouse with empty 
space, or if there is a group of county fair buildings avail- 
able, the problem of a suitable place may be easily solved. 
Naturally the latter part of the winter or early spring is 
the best time of the year for the show. 

Fourth, when a place and time has been determined, sepa- 
rate committees may be appointed to attend to publicity, 
location of individual exhibits, and program. Each should 
draw up its plans in detail and present its reports for the 
approval of the association before going ahead. 

95 



AUTOMOBILE SELLING 

The publicity should be most carefully worked out. The 
co-operation of the newspapers should be secured. Manu- 
facturers' advertising departments should be called on for 
help in supplying copy. The local commercial club should 
be interested in the movement as a thing good for the 
community. The individual members of the association 
should all plan to advertise heavily. The country around 
should be placarded announcing the show. Schools and 
social organizations may also be called in to help to adver- 
tise the show. 

The program committee has an opportunity to make a hit. 
In medium sized towns, a most effective departure from old 
fashioned show programs is to conduct an educational pro- 
gram on automobiles for both present and prospective car 
owners. It may be called "An Automobilist's Short Course." 

Such an educational program might well include concrete 
instruction, using actual cars and car parts in demonstration, 
on such points as the following: 

Gas engine principles and types 
Fuels and carburetors 
Carburetor adjustment 
Ignition systems 
Magnetos, care and adjustment 
Governing and cooling mechanisms 
Lubrication 

Testing horse power rating 
Valve timing and adjustment of parts 
Engine troubles 
Clutch adjustments 
Etc. 

It may be possible to get manufacturers to send repre- 
sentatives to give general talks or illustrated lectures on 
such subjects as: 

96 



ADVERTISING TO SECURE BUSINESS 

"The Story of the Automobile'' 
"From Rubber Plantation to Automobile Tire" 
"How Good Lubricating Oils Are Made" 
Etc. 

A program presenting such matter as this would be ex- 
ceedingly valuable from an educational standpoint. If 
properly promoted it is certain to draw crowds. Effort 
should be made to get women to attend in large numbers. 
High school students may be invited for certain sessions. 
So far as possible the meeting should be made a community 
affair, one that will be remembered long after it is closed. 
An educational program such as this will do the trick. 

The program should be so arranged as to permit of ample 
time for the people who attend to look over cars on exhibi- 
tion. 

The results of an automobile show, if properly managed, 
should be as follows : 

First, greatly increased opportunities to sell cars. Many 
new prospects may be added to the live prospect file, 
when sales are not closed. 

Second, greatly increased interest in automobiling 
throughout the community. This will help to increase 
the demand for cars and all things that are used in 
automobiling. 

Third, the show will greatly increase the sphere of influ- 
ence of the dealers. Their fellow townsmen will 
begin to give them more credit for live wire hustling, 
and they will become better known. Their territories 
may be greatly extended. This is certain to help in 
their business. 

Fourth, the automobile show, properly carried on, gives 
prestige to the dealers not only with their townsmen 
and customers, but also with the automobile, parts 

97 



AUTOMOBILE SELLING 

and accessory manufacturers. Competing dealers 
learn to know each other better, usually with grow- 
ing respect for each other. 

Automobile shows are strongly advised wherever it may 
be possible to carry them on. Shows constitute a form of 
advertising that should not be overlooked. 



98 



CHAPTER XIII 
MAKING MONEY FROM ACCESSORIES 

Instance after instance has come to the attention of the 
writer of the failure of automobile dealers to take up the 
sale of automobile supplies, accessories, repair materials, 
etc, with the consequence that these lines have been adopted 
by hardware dealers, repair shop men, and even department 
stores. There may be, and undoubtedly are in many in- 
stances, excellent reasons why the automobile dealers should 
not take up the sale of these side lines, but the reason is 
scarcely ever that it would not be profitable. 

Automobile dealer logical outlet for accessories. — The 
automobile dealer who has combined with his business the 
sale of accessories, gasoline, oils, tires, etc., has something 
to sell to the public all of the time, all of the year around. 
These materials make excellent advertising aids even for 
his cars. He can keep his place of business before the pub- 
lic all of the time. He can use these materials in making 
attractive window displays, which will help to bring trade 
that is profitable in itself, but at the same time attract people 
into the store who may in one way or another help the dealer 
in the sale of additional cars. The dealer who handles tires 
and accessories can make his place of business highly at- 
tractive, and very much more profitable, than the dealer 
who sells only automobiles and who attempts to make his 
place of business attractive by means of rubber trees, ferns, 
and fancy office furniture. 

Car owners naturally think of the tire dealer as a source 

99 



AUTOMOBILE SELLING 

of supply for the things needed in connection with the use 
of the automobile. The car dealer has, therefore, the inside 
track on getting car owners into the habit of coming to 
his place of business. How much easier it is for him to 
secure this trade than it is for a department store which is 
largely patronized by women, and yet department stores are 
finding automobile accessories, tires in particular, very at- 
tractive and profitable lines to handle. 

It should be borne in mind that, in the long run, the big 
end of the automobile business will be in replacement of 
cars that are in use, and particularly in supplying the acces- 
sories and supplies that car owners need. Some time or 
other in every community car sales will reach a balance, 
then the dealer who has the accessory and supplies busi- 
ness will have, and it is likely will continue to have, the 
cream of the automobile business. Some one will sell these 
goods, why not the car dealers? 

Every customer who has been sold a car by the dealer has 
presumably been carefully studied by the dealer, and the 
dealer is, therefore, in a much better position to determine 
what accessories and supplies that car owner is likely to 
want than anyone else. What a waste it is to throw away 
this knowledge of a customer after he has been sold only 
a car! Customers who have bought cars, therefore, consti- 
tute a most excellent prospect list for the car dealer's 
accessories and supplies, if he handles them. But in addi- 
tion to this, all car owners in the territory can be culti- 
vated for business, and if the dealer can succeed in get- 
ting them to come frequently to his place of business for 
whatever they may need, he may be in excellent position to 
know when they are likely to be in the market again for a 
new car. 

The sale of accessories and supplies does not run into such 
large figures as the sale of an automobile, but if the dealer 
will sit down and take out his pencil and do a little figur- 

ioo 



MAKING MONEY FROM ACCESSORIES 

ing, he will find that a larger percentage of gross profits is 
made on the sale of accessories and supplies than on auto- 
mobiles. Not only that, if the accessory business is prop- 
erly handled, he will find that his net profit will compare 
very favorably with the net profit from the sale of automo- 
biles. 

Accessory business pays. — The accessory business can 
be placed on its own feet and be made to pay its own way 
and, where there is enough business to keep an automobile 
dealer going, there is enough business to keep an accessory 
department. 

Usually the automobile dealer has some space about his 
building which can be devoted to the sale of tires and acces- 
sories, making it unnecessary to add to his rental overhead. 
The sale of accessories, if properly handled, requires the 
services of a good salesman, it is true, but this salesman can, 
no doubt, give part of his time to the sale of cars, so that 
the salary expense of conducting an accessory department 
need not be any more than a small percentage directly pro- 
portional to the actual business obtained. 

Turn-over in accessory department. — It may be pointed 
out by some who have already given some consideration to 
the accessory business, that certain items, such as oils, gas, 
and tires, have but a relatively low profit margin. This may 
be true, but the possibilities of turn-over are so great that 
in a year's time what appears to be a low margin is likely 
to turn out to be a very excellent profit. For example, there 
may be only a 25% margin on the sale of tires, but, if the tire 
department is properly handled, it should be able to turn 
its stock at least five times in a year and, therefore, the total 
gross profit on the amount of money invested in that depart- 
ment will not be far from 150%. Even if the expenses of 
selling these tires amounts to as much as the whole invest- 
ment in tires, in a year's time, still the total net profit will 

101 



AUTOMOBILE SELLING 

amount to 50% of the amount invested, a very handsome 
profit indeed. 

In all considerations of whether it pays to handle a line 
or not the dealer needs to consider the possibilities of turn- 
over very fully. One turn-over per year means only one 
profit on the amount invested. Two turn-overs double the 
profit on the amount invested. Three turn-overs triple the 
amount of profit on the money invested. Five turns mul- 
tiply the profit on the amount invested five times. Five 
turns each yielding only 5% net profit are better than two 
turns each yielding 10% profit. 

Similar computations need to be applied to oil and gas 
and other fast selling commodities. 

On the other hand certain lines of accessories yield a 
relatively high profit. This is as it should be. The possi- 
bilities of turn-over are probably less. However, the dealer 
should not be deluded into the belief that an article will be 
highly profitable if it shows a profit of 50% of the sales. 
That may seem like a very favorable proposition, but if 
there is an opportunity to turn the stock in that accessory 
but once in a year, it may be really less profitable than han- 
dling tires or other quick sellers offering lower margins of 
gross profit. 

Conditions of success. — The conditions of success in 
handling accessories and supplies in the automobile busi- 
ness are, first, careful buying of the right goods to suit the 
customers in the territory in which the dealer's place of 
business is located; second, active salesmanship and adver- 
tising — the goods will not sell themselves — third, capital; 
and fourth, managing ability. 

Good buying. — There are over a thousand items of ac- 
cessories and supplies offered in the market to-day for auto- 
mobile owners. It would be folly for any dealer starting in 
the business to try to take on any large portion of this num- 
ber. How many items shall be handled will depend, of 

102 



MAKING MONEY FROM ACCESSORIES 

course, upon the amount of capital that the dealer has to put 
into his business and the prospective opportunity to make 
sales in his community. It would seem the better part of 
wisdom to take on only a moderate assortment to begin with, 
and later add to it as the opportunity comes for seeing what 
the trade wants. 

Small lots. — It is also a good idea in the beginning of an 
accessory business to buy in small lots of each item. Deal- 
ers would do well to forget all about there being such a 
thing as quantity discounts for buying large quantities. 
Some of the best accessory departments in the country are 
run on the principle of buying only a quarter or even one 
twelfth dozen lots. Managers of these departments buy 
little but they buy often. 

Few houses. — As a general rule, it seems advisable for 
the dealer to confine his purchases, so far as possible, to a 
few houses. There may be exceptions to this, such, for 
example, as when the dealer may have the opportunity to 
serve as agent for a line of tires, oil, or other similar items. 
But if there is a well established jobbing house in automo- 
bile accessories not very distant which will give proper 
service in handling small orders, the dealer will find greater 
profit in buying even at higher prices than to take on large 
lots, buying direct even at lower prices. In addition to the 
saving made through more rapid turn-over in buying smaller 
lots, there is also the possibility of considerable saving in 
dealing with only one or two houses and thus saving the 
time, money and labor needed to make out orders, to pay 
bills, etc. 

Put some one in charge. — Active salesmanship and ad- 
vertising is needed. Some one person should be responsible 
for the accessories department, and another for the gas and 
oil. This does not mean that these persons should give their 
entire time and attention to these departments. In a small 
place it may be entirely possible for them to assist in other 

103 



AUTOMOBILE SELLING 

lines as well but, having responsibility in these lines, it may 
be possible for them to specialize in the selling so that better 
results may be obtained. 

Display. — The goods should be displayed where people 
can see them. In another chapter we have outlined the pos- 
sibilities of advertising accessories and supplies in connec- 
tion with automobiles. We need here merely to repeat that 
the goods should be displayed in windows and in show cases, 
on shelves, or on counters. These displays should be made 
as attractive as possible, and changed frequently. If pros- 
pective customers do not see the goods, they cannot know 
that you have them, and consequently do not think of buying 
them. Proper display is one of the most effective means of 
salesmanship. 

Capital required. — The automobile business is one that 
requires relatively a great amount of capital. The auto- 
mobile dealer must finance his buying and, in many cases, he 
finances his customers to a very large extent when they, in 
turn, buy cars from him. Therefore, a large amount of 
capital may be tied up in the simple business of buying and 
selling cars. 

It is for this reason, probably, that a great many automo- 
bile dealers have not gone into the accessory, garage, and 
other allied lines of the industry. It is impossible, even in a 
small town, to do very much as an automobile dealer with- 
out a capital of at least $10,000 to $15,000. A dealer with 
from five to ten times this amount has an advantage. Cus- 
tomers are attracted to the place of business that is able to 
display several cars at one time. It may not always be 
possible to dispose of used cars as quickly and as profitably 
as might be hoped for. Thus capital used up in trading new 
for old cars is tied up. The amount of the investment 
made in new cars and in used cars is so great that it over- 
shadows in most dealers' minds that which is put into ac- 
cessories and supplies. Since there is a certain amount of 

104 



MAKING MONEY FROM ACCESSORIES 

risk in the automobile business, just as in every other, it 
may be that the dealer does not care to give any thought 
at all to anything but the one work of buying and selling 
cars. 

Budget for accessories. — If accessories are to be handled, 
the best way appears to be to set aside a certain sum of 
money for the accessory and supplies lines, and then to 
select some employee who will be responsible for it, so as 
to relieve the manager as far as possible of having to think 
about the management of this sub-department, leaving him 
free to continue his operations in the automobile market. 

What to handle. — It is rather difficult to make sugges- 
tions on what should be included in the preliminary orders 
of a dealer who is about to establish an accessory and sup- 
ply department. Among the first items to be included 
would, of course, be gasoline, oil and tires. To these, how- 
ever, should be added tire repair material, extra wheel sets, 
polishes, home vulcanizers, spark plugs, clutches, pressure 
gauges, wrench sets and other tools, pumps, flash lights, 
automobile lights, dimmer lenses, radiator cement, coil and 
vibrator pipes, radiator hose connections, horns, speedome- 
ters, bumpers, pedal rubbers, foot accelerators, door anti- 
rattlers, jacks, towing rope, goggles, automobile fire extin- 
guishers, radiator ornaments, rear tire holders, rear view 
mirrors, etc. Later orders may include such items as 
vacuum bottles, automobile robes, foot warmers, picnic sets, 
sponges and chamois, — items that may be demanded by the 
automobile trade. 

If the dealer will hold to the principle, not to overbuy, 
and to forget entirely about quantity discounts, he can get 
a great deal of help from the salesmen of accessory houses 
on making up the proper assortment to start with. Cer- 
tainly their advice should not be overlooked. 

Overbuying. — Overbuying is exceedingly dangerous in 
the accessory field for the reason that there are styles in 

105 



AUTOMOBILE SELLING 

accessories, and these styles change almost as rapidly as they 
do in the millinery field. Then there are improvements from 
time to time. New patented goods come out that imme- 
diately make older goods obsolete. It is easy to overestimate 
the demand for such classes of accessories. It is a waste to 
buy a dozen of a thing when there may be only a half dozen 
motorists in the community who will ever want the article 
under consideration. These are some of the reasons why 
the dealer is urged to keep his buyings down to a low 
quantity of each item selected. 

Handle good merchandise. — Most dealers find that it 
pays to handle merchandise that will give satisfaction in the 
long run, even if at somewhat higher price than other goods 
that may be had in the market. If a dealer is starting out 
with a small stock he should buy with an eye to highest util- 
ity. Novelties should be left alone for later experiment, and 
cheap goods should be omitted or left to the 5 and 10 cent 
stores to handle. Many dealers have a principle of being 
willing to try a tiling once, buying a sample and displaying 
it and noting whether people are interested in it or not. By 
buying in this way, it may be possible for a dealer to have a 
stock of a very large number of items, but at the same time 
a fairly low inventory value, and it is by carrying a stock of 
this kind that a dealer can develop a favorable reputation 
in his trade for having up-to-date things and a wide variety 
of merchandise, and still not be caught with unsalable 
goods on hand when styles change. There is danger of 
depreciation also in automobile goods, and for this reason 
as well as others already named, the buying must be care- 
fully done. 

Have salesman learn merchandise. — The salesman ap- 
pointed to take charge of the sale of the accessories and 
supplies should be directed and encouraged to make a study 
of his merchandise, and the best way in which this can be 
accomplished is by the study of the literature and adver- 

106 



MAKING MONEY FROM ACCESSORIES 

tising that usually comes with these goods. The reading of 
trade papers will give the salesman an accurate idea of new 
things coming out. In addition to that it may be possible to 
gain valuable points from the salesman who sells the goods. 
The salesman should aim to know sufficiently about his 
merchandise so that he can answer questions that the cus- 
tomer may ask him about it. Both the dealer and his sales- 
man should have definitely in mind why automobile dealers 
should own an accessory before putting it in stock, and 
then the salesman should be able to tell prospective custom- 
ers precisely why they should own it when the opportunity 
comes to sell it. 

When other means of securing information about an ac- 
cessory fail it may be possible to write to the manufacturers 
of it for help, and this usually brings highly favorable re- 
sults as the writer can testify by experience tried many 
times over. 

Value of reputation for knowing "Oils" or "Tires/' — 
On going into the accessory and supply line, the dealer 
and the salesman who are delegated to take charge of the 
sale of these goods, should attempt, as soon as possible, 
to secure for themselves the reputation in the community 
of being specialists on accessories, and particularly in oils 
and tires. The sales of gas, oils and tires are the most 
frequent of any of these lines, and customers know very 
little about the quality, particularly of either oils or tires, 
and cannot possibly judge them from their superficial ap- 
pearances. 

It is suggested, therefore, that some one in the dealer's 
place of business should study automobile lubrication and 
become a specialist in this subject and similarly that some 
one should learn all about tires in detail. It is possible to 
secure books that will help. Articles appear from time to 
time in the trade papers that are exceedingly helpful. With 
reference to oils there are a number of special sales points 

107 



AUTOMOBILE SELLING 

about some of the better automobile lubricants all of which 
the salesman should fully know. When a customer comes 
in and makes an inquiry about lubricants or lubrication, 
it will add to the effectiveness of the situation if the dealer 
or his assistant will call on the man in the place who has 
made a specialty of lubrication, introducing him as the 
specialist in this line. 

Illustration of sales knowledge on oils. — Some of the 
sales points about the better automobile lubricants may in- 
clude the following: A rich velvety appearance, a tacky- 
ness which may be demonstrated by noting how it adheres 
to a nail or to a knife point and by pointing out that it will 
stick to gears in the same manner. It may also be noted 
that it has a neutral odor, and the fact indicated that there 
are no free acids, free alkalies or free fats in the mixture, 
any one of which would be injurious to the grease as a 
lubricant. A good lubricant will not harden in the air or 
when it becomes cold, and there are specific reasons why it 
will not, which the salesman should know. It will not break 
down in heat, also for a definite reason that the salesman 
should know. A good lubricant has a sort of cushion ef- 
fect. It prevents grinding of gears. It will not foam in 
hot weather. It will stop the racket of noisy gears. A 
good lubricant saves power, and, therefore, gas and wear and 
tear on the machine. It may be possible to point out, as 
proof of the excellence of a lubricant, something about its 
methods of manufacture and the people who make it and 
the care used in manufacturing. Finally the economy in its 
use constitutes the basis of a sales point. There may be 
cheaper oils, but do they give as much service before having 
to be renewed, as the one you have to offer? 

If the dealer will specialize in oils, he may have to have 
several varieties on hand for sale, and he can advertise this 
with excellent effect by calling attention to the fact that a 
particular lubricant is needed for each particular use in a 

108 



MAKING MONEY FROM ACCESSORIES 

car and that, in the long run, greases that were not intended 
for a particular use are going to do the car harm. This 
is an idea that department stores and hardware stores are 
not likely to dare to follow, and the automobile dealer's 
business in the sale of oils will grow in competition with 
the other channels of distribution of these products. 

The important points to be considered in this connection 
are that it pays to secure the oil business not only for itself 
but also for the opportunity it will give the dealer to sell 
oil customers other merchandise. It pays for itself and it 
also contributes to the volume of business in other depart- 
ments as well. 

Illustration of sales-knowledge on tires. — In the same 
way as with oils, the dealer should make himself the spe- 
cialist in his community on tires. To that end he should 
study the tire needs of the cars in his community and should 
attempt to select lines that suit those needs. In buying tires, 
as in buying other lines, care should be exercised to confine 
the purchase to one, or at most two lines. Tires run into 
considerable money and, if an attempt is made to carry 
several lines, the capital invested will run too high, and the 
possibilities of turn-over will be greatly reduced. The rule 
here, as elsewhere, is to buy little and buy often. 

THE TIRE WITHOUT A NAME 
(Editorial from the New York Journal) 

"Among automobile tire men the tire with no name, the tire 
which tells you it is good — fout doesn't prove it — the tire that you 
never heard of before, the 'chauffeur's graft' tire — all such worth- 
less stuff is known as the 'gyp' tire. 

'The v gyp' tire is named for the 'gyp' horse, the latter being 
the horse that you buy of the gypsy. All gypsies have horses 
for sale. You see them at the roadside, the horses picketed, sad 
and thin. Each gypsy can tell you wonderful stories about the 
merit of his horses. But the wise farmer buys no 'gyp* horses. 

109 



AUTOMOBILE SELLING 

He knows that next morning when the horse is lame, the gypsy 
will have disappeared. 

"The wise buyer of automobile tires buys no 'gyp* tire. For if 
you buy a horse from a gypsy you at least get a horse. He has 
four legs, some kind of a mane and tail, and usually at least one 
eye. Even a gypsy when he sells you a horse must sell a HORSE 
of some kind. But the maker of 'gyp' tires can sell you anything 
or nothing. You haven't X-Ray eyes, you cannot look on the 
inside, you cannot know whether what you think is rubber is 
really rubber or a mixture of rubber or something else. You can- 
not tell whether the fabric, which is to the tire what your muscles 
are to the body, is intended to wear or WEAR. 

Back of every tire worth while there must be an honorable name 
and a great organization, for it takes great factories, great buying 
power, expensive machinery, a well established industry to pro- 
duce a tire worth buying. Every tire that is worth while has its 
reputation, its name— IT IS KNOWN. 

"The man using his eloquence to persuade you that some un- 
known tire is a better bargain than a real tire, is simply using his 
eloquence to cheat you. If you doubt this listen to the experience 
of the writer. One of his friends is manager of a great concern 
that sells automobile bargains. The friend showed the writer 
thousands of tires, all of different kinds, or rather INDIFFERENT 
kinds. They were piled up ready to be sold. All nameless. Ex- 
traordinarily low prices were quoted. This writer said to his 
friend, 'If those prices are really as low as you say, let me know 
which is the best of these bargain tires, so that I can get them 
instead of the more expensive tires that I buy/ 'No/ said the 
dealer in 'gyp* tires, 'YOU don't want any of this stuff. You 
wouldn't get satisfaction. Continue buying what you have been 
buying, one of the well-known makes. Nothing else would suit 
you/ 

"Mr. Reader, buyer of tires, nothing in the way of a 'gyp' tire 
would suit you either. You wouldn't buy a solid gold ring of an 
unknown peddler if you had no way of testing the gold. You 
would be suspicious of the tire man who offers you solid rubber, 
high class workmanship in fabric, for less than the natural price 
of solid rubber and cost of high class workmanship." 

Sales points of tires. — The sales points of tires that can 
be emphasized by the salesmen and in the advertising are 



MAKING MONEY FROM ACCESSORIES 

numerous. Some of the more important ones are presented 
below. 

Mileage. — The most important point about a tire is the 
mileage that it can deliver. The tire buyer wants to 
be assured that the tire offered to him will give satisfac- 
tory service. The mileage possibilities of a tire may 
be proved, making clear its construction features, such as — 
the quality of materials used in its manufacture, the scien- 
tific compounding of the rubber, the expert skill used in 
putting the various parts together, the accurate inspection 
preventing any tire from going out with imperfections, 
the proper curing or vulcanizing of a tire, etc. 

The mileage possibilities of a tire may also be proved by 
referring to the use that it is actually giving in service. Tes- 
timonials are valuable here as elsewhere. Records of mile- 
age received by others in the community are helpful. A 
statement of the number of tires in use throughout the 
country, especially if made in comparison with what the 
number was a year before, showing the growth in the use 
of the tire by other people, may be helpful. It is also a good 
point to refer to the company and its reputation as makers 
of tires, particularly if the tire line handled is well adver- 
tised. 

Other sales points that may be emphasized include such 
items as that the tires possess excellent anti-skid qualities. 
It may be pointed out for some lines that they are light 
running. There are differences in tires in this respect. A 
light running tire is one that possesses a high degree of resil- 
iency. With such tires the car runs on air instead of on 
stiff fabric. A light running tire saves power, wear and 
tear on the car, and, therefore, saves its own cost in re- 
duced expenses for other items. 

Tires may also be comfortable riding, they may not be 
easily injured or, if injured, may be easily repaired. This 



AUTOMOBILE SELLING 

is a significant point since repair costs sometime frighten 
possible purchasers. 

If a tire is perfectly made as to diameter and circumfer- 
ence it is easy to put on and take off. A salesman can make 
this a strong point in favor of his tire with some purchasers. 
The good appearance of a tire is another important sales 
point. Finally, the guarantee of mileage, if any ; the adjust- 
ment privileges granted, and the low cost in proportion to 
the service obtained may be points of emphasis. 

As an expert on tires and tire use, the dealer should know 
how to advise the car owner on how to take proper care of 
the tires in use, and should in as many ways as possible 
educate his trade in this direction. A study of the literature 
issued by the tire companies, not only of the company sup- 
plying the dealer but of other companies as well, will be the 
most helpful source of the information that the dealer will 
need. 

Care of Tires. — Among some of the points that the dealer 
should know and upon which he may be of great service to 
his customers are, for example, the right load capacity of 
tires of various sizes with various inflations. With ordi- 
nary fabric tires the dealer should know, and should show 
his customer, that the heavier the load to be carried the 
greater the inflation needed in pounds per square inch. 

Under-inflation is the cause of at least three-fourths of all 
tire trouble. It causes extraordinary flexing of the side 
walls at every turn of the wheel. This produces internal 
friction and this friction causes intense interior heat in the 
tire. Heat destroys rubber. An under-inflated tire is more 
apt to puncture on a sharp object than a properly inflated 
tire. Under-inflation causes rim cutting. It also causes the 
tire to run heavier than a properly inflated tire and thus 
consumes more power. 

Cord tires, of course, need less inflation than fabric tires. 



MAKING MONEY FROM ACCESSORIES 

The recommendations from the companies with reference 
to their tires should be observed on this point. 

There is a commonly accepted idea that tires should not 
be inflated up to the standard prescribed pressure during 
hot summer weather. This impression is caused by observ- 
ing that tires blow out more frequently during the summer 
than during any other season. However, it is not the over- 
inflation that causes the tires to blow out. The increase in 
temperature of summer weather over winter weather would 
have little or no effect in increasing the amount of pressure 
due to expansion of the air within the tire. 

The reason why tires blow out in hot weather is because 
the car is used more actively than at any other time during 
the year. The friction of the tire over gravel or crushed 
stone roads, or the friction already referred to caused by 
under-inflation, frequently raises the temperature of the 
air in the tire to 300 Fahrenheit or more. Thus it is fric- 
tion heat rather than the summer heat that causes the tem- 
perature of the tire to rise to the point where the rubber is 
burned and destroyed. A temperature of 300 will cause 
rubber to heat so much that it will smoke and this amount 
of heat is certain to ruin any tire made of rubber in a very 
short time. 

Any cause of friction, therefore, will injure a tire. 
Under-inflation is one of the most fruitful causes of fric- 
tion and tire heating. Speeding, of course, results in heat- 
ing the tire to a high temperature. Quick starting or quick 
stopping likewise causes great friction on the tires. Driv- 
ing fast around corners has the effect of grinding the face 
of the tire against the surface of the ground, thus causing 
friction and heat. Wheels out of proper alignment like- 
wise produce considerable friction resulting in heat and in 
destruction of the tire. 

When a tire is punctured the car should be stopped and 
repairs made before going on. Small injuries in the casing 

113 



AUTOMOBILE SELLING 

should be promptly and properly attended to. By having 
the tires inspected from time to time by the dealer, the cus- 
tomer can learn of these injuries and have them repaired 
at small cost, and in this case a stitch in time is truly worth 
more than nine. 

Care should be exercised in driving so as to avoid run- 
ning over stones, bricks or other obstructions, even if small, 
at high speed. Running a tire squarely against the corner 
of a brick at a speed of say 35 miles per hour will break 
the fabric in the best tire made nine times out of ten. 
Nothing but careful driving will reduce trouble of this 
sort. Usually the break occurs in the inner layers first and 
it may take some time before the blow-out, that is certain to 
follow, occurs. Before starting out on an extended trip 
every driver should examine the inside of his casings for 
signs of broken fabric. 

Heat, light and oil are the greatest enemies of rubber. 
When tires are not in use they should be kept in a cool, 
dark place. Tires should not be allowed to stand on a 
greasy floor or in a puddle of oil or grease. 

The interior of the casing should be well dusted with finely 
powdered soapstone or talcum, but too much is as harmful 
as too little. The purpose of the soapstone is to reduce 
friction between the casing and inner tube, but too much of 
it will cause lumps to form that will chafe the tube. 

It is a good plan to change the position of the tire front 
rear to front from time to time. It is the rear tires that 
bear the heavier strain, and as a rule the right hand tires 
get more wear than the left. 

Extra casing should be protected by enclosing in a light- 
proof packing. Extra inner tubes should be kept in bags 
and kept away from contact with tools or grease. Many in- 
ner tubes are damaged by friction from other objects lying 
near, as in a tool box, before application to the wheel. When 
a car is out of service, if is generally best to remove the 

114 



MAKING MONEY FROM ACCESSORIES 

tires. When this is done the tires should be washed with 
soap and water, and then wrapped in cloth or paper and 
placed in a cool, dark place. If tires are left on the car, 
the car should be jacked up and most of the air let out of 
the tires. In case the car is not jacked up the tires should 
be kept inflated and, if possible, turned, occasionally. 

A few facts like these explained by the dealer to his cus- 
tomers will save the customers money and in the long run 
they will appreciate such service and make it worth while 
for the dealer. 



JI5 



CHAPTER XIV 
POLICIES 

Courtesy. — The first and most important policy that 
should be adopted in any automobile dealer's business is 
courtesy. All who enter the place should be rendered every 
politeness and consideration whether they are buyers or not. 
There should be a rule, distinctly understood, that no inde- 
cent language or profanity be permitted in the garage, shop 
or store. The use of tobacco, particularly smoking, must 
be prohibited because of fire risks. But an up-to-date auto- 
mobile store will insist on elimination of the use of tobacco 
in any form because of its possible negative effect upon 
prospective customers who may enter the place. Even most 
people who smoke do not like second hand smoke. If only 
one customer out of ten dislikes it that is a sufficiently good 
business reason for stopping it. 

See that every customer who enters the place is promptly 
greeted by some one and, if there is no one who can be 
of immediate service, the customer should be offered a seat 
and given a magazine or paper or catalog to look over while 
waiting for the person who is later to perform the service 
desired. 

The customer is always right. — In all complaints 
brought in by customers the only safe rule to follow is to 
assume at the first that the customer is right. The largest 
retail merchandising establishments of the country in all 
lines have found that this is the only safe rule to follow. 
After investigation it may be found that the customer is 

116 



POLICIES 

sometimes wrong, but it is entirely unsafe at the start 
to assume that this may be the case. 

Maintain prices. — A great deal has been written in trade 
papers and much has been said in various other ways on 
the subject of maintenance of prices. The principle of one 
price to all has been generally accepted as fundamental in 
modern merchandising and the dealer who begins to cut 
prices to a few of his customers is likely to find that within 
a short time everybody knows about it and everybody ex- 
pects to be given the cut price. 

Price cutting is an insidious evil for which there is little 
or no excuse if the buying has been properly done and sales- 
manship properly carried out. A car, like other merchan- 
dise, is worth what people think it is worth and what they 
think depends in part upon what they can buy other cars 
for, but it also depends in large measure upon what value 
they place upon the exclusive feature found in any given 
car. Therefore, price making and values depend upon sales- 
manship. 

The important point for the dealer to keep in mind is 
first, not to be stampeded into over-buying, and second, 
not to be stampeded into selling out at cut prices after 
having his merchandise placed in his store. There is noth- 
ing that will prevent price cutting so effectively and so well 
as an accounting system which will reveal precisely what 
it costs to do business line by line. No dealer willingly cuts 
a price below his cost of selling. The dealer who has it in 
mind to cut prices should know what the cost will be to him 
if he does sell at cut prices. In another chapter we shall 
outline the kind of an accounting system that will help the 
dealer in this regard. 

Cash or credit? — Every automobile dealer will find it 
necessary to decide on some policy with respect to the credit 
business. Not more than one sale out of ten on the average 
can be made on a strictly cash basis. 

117 



AUTOMOBILE SELLING 

The only alternatives are, either to sell the cars on credit, 
or to work out some method by which the prospective pur- 
chasers can secure credit elsewhere and thus make the 
sales possible. The price of the car runs into such an 
amount of money that very few people, those who are well 
to do included, have available the necessary amount of 
money to make the purchase even when their need has been 
obviously pointed out to them. Credit and installment pay- 
ments seem absolutely essential in the automobile business. 

The better class of dealers, however, restrict the credit 
given very largely. In the first place a large initial pay- 
ment is required, in most cases a third and sometimes more, 
of the price of the car. Partial payments follow, usually on 
a monthly basis with interest and in sufficient amount so 
that the car may be paid for by the end of the season or 
certainly within the year. A plan followed by many dealers 
is to require completed settlement in ten equal monthly 
payments, in addition to which the customer must pay the 
insurance to cover fire and theft for the year. 

The first essential of a successful credit business is that 
the customer who desires to buy for credit should first be 
thoroughly investigated to determine whether it is likely 
that he will pay his debts when they fall due. In other retail 
lines the greatest successes have not come by conducting a 
strictly cash business but rather by accepting a large volume 
of credit business and by having an efficient credit depart- 
ment to insure that the customers secured are entitled to 
credit before the sale is finally closed. 

There are certain lines which may be drawn between 
those to whom credit should be granted and those who 
should not receive credit. In the first place people with 
means, but whose means are not immediately available, may 
generally be trusted. The farmer who is waiting for his 
crop to ripen, or for better market conditions, the lumber- 
man who is waiting for the spring thaw to move his logs, 

118 



POLICIES 

the ice dealer who is waiting for hot weather to bring him 
a market, the contractor who is completing a job for which 
he will be paid at its close, the manufacturer whose prod- 
uct requires much time and capital expense before it is 
ready for the market, these are classes that may safely re- 
ceive credit under average conditions. The standing of a 
customer in his community, his past reputation for meet- 
ing his debts, the amount of his present indebtedness, his 
reputation as a careful business man, his personal habits, 
the habits of members of his family, are also details that 
are of high significance to the credit department. So in 
determining whether an applicant for credit should receive 
credit or not, all of these points are given consideration. 
Careful investigation of credit risks is the first essential of 
a successful credit business. 

If the dealer or his credit man possesses little or no per- 
sonal knowledge about the credit applicant, inquiry should 
certainly be made of those who do have such knowledge. 
Even in cases where the dealer does know the applicant, it 
will do no harm to gain the information suggested above 
from those with whom the applicant has had more direct 
dealing. 

Collections of installment payments should be handled 
systematically. A great many car dealers, particularly those 
handling certain well-known cars, have a system of turn- 
ing all installment notes over to financial institutions organ- 
ized to finance just such business relations. The dealer 
indorses the notes, thus making it two-name commercial 
paper and receives anywhere from 80 to 100% of the total 
amount. If less than the full amount is paid by the financ- 
ing institution, the dealer receives the remainder with inter- 
est when the final payment is made by the customer. 

If the dealer plans to finance his own credits, he must 
make provision for a thorough working collection system. If 
the payments are to be made on the partial payment plan the 

119 



AUTOMOBILE 'SELLING 

customer should be solicited for the payments very promptly 
at the time that they are due. There should not be any 
slackness in this respect. Slackness on the part of the dealer 
prompts slackness on the part of the customer. Collections 
are usually handled by first sending out a bill or statement 
showing the amount due, dated and sent so as to reach the 
customer on the day or just the day before the amount owed 
falls due. Two or three days later if the payment is not 
made, a letter asking the reason why, follows and if no 
immediate return is obtained from this, most automobile 
dealers send a representative to make personal inquiries. 
Systematic methods of this description usually bring the 
desired results. 

Finally, if personal solicitation for the payment does not 
bring in the money, it may be necessary to take more dras- 
tic means, particularly after the dealer has fully satisfied 
himself that this is the only method to follow. 

It should be borne in mind that the same principles of 
salesmanship that are used in selling a car, should be em- 
ployed in making collections. In other words, there should 
be a continuing system of salesmanship operating all of the 
time until all of the money for the car has been collected. 

Collection letters should be written in the same spirit and 
according to the same principle as selling letters. The 
customer should be sold on the desirability of bringing 
in the cash and should feel that he is doing it of his own 
accord rather than being forced to do it. Force should be 
introduced only as a last resort. 

Handling used cars. — One of the bug-bears of the auto- 
mobile business is the second hand car. Excepting the low- 
est priced car agencies, it seems necessary that automobile 
dealers must operate their business in such a way as to 
take in second hand cars in exchange for new ones sold. 
A large part of the business of many automobile companies 
is made of exchanges of this kind. Chalmers, Willys, and 

120 



POLICIES 

other automobile manufacturers assert that their cars are 
sold to those who have owned cars before in 85% of their 
sales. 

If care is not exercised in handling used cars the profit 
gained in the sale of new cars will be lost on the second 
hand cars. It is suggested that the dealer should inspect 
the used car offered in trade with care before placing a 
value upon it 

The second hand car is worth only what it will bring 
when sold under normal conditions. In fixing the value of 
a car the dealer should have in mind what he is certain that 
he can get for it after it has been repaired and put into 
condition for use. As a matter of fact the dealer should 
work towards securing a profit on handling the sale of the 
second hand car, just as he secures a profit on a new car, 
otherwise he will be making two sales for only one profit. 

A suitable blank is a great aid in inspecting and arriving 
at a competent valuation of a used car. The reader should 
study Figure 3, which presents a model of statements of 
this kind. This statement when filled out is to be signed by 
the owner. 

Figure 3 

USED SECOND HAND CAR STATEMENT 

Date 



Gentlemen: — Below you will find description and general state- 
ment of my car. 

Make of car Number Color body 

Year Model Color gear * 

Type body Horse power 

Price of car when new Price equipment when new 

Total price paid for car and equipment Date 

Miles car has been run Accidents and nature 

Registration No Price wanted In trade for . . . 

121 



AUTOMOBILE SELLING 



EQUIPMENT 



Number oil lampa Tire chains. . 

Number electric lamps Speedometer 

Gas headlights Trunk rack. . 

Gas tank Make rims. . 

Generator Tire cover. . . 

Top Extra rims. . 

Top curtains Clock 

Top cover Extra parts. 

Magneto Pump 

Storage batteries Jack 

Wind shield Tools 

Slip covers Starter 

Extra seats 

Type tires 

Size tires, front Eear 

Number extra tires Extra tools. . 

Number extra tubes 

Tire brackets 



CONDITION OF CAK 

Motor Clutch Trans, gears 

Self-starter Hear axle Front axle 

Wheels Steering gear Tires 

Body Paint Gen. appear 

Car will be delivered to you 191 . . in con- 
dition described above, and price is subject to change if car is 
not as described. 

Yours very truly, 

Owner 

Address 

I herewith give title to the 

above car as described, and agree to sign affidavit of ownership of 
old car before delivery of new car. 

Owner 

Car described herewith is accepted at exchange value of $ 

this day of 191... 

Signed 



The use of such a statement with the owner's signature 
at the bottom will not only assist in appraising its value 
properly but also will tend to remove misunderstandings. 
In some cases a car owner disposing of his car is likely to 
remove parts from the machine before turning it in, occa- 



POLICIES 

sionally after an offer has been made and accepted. A care- 
ful inventory of the car in accordance with this suggested 
statement makes it possible to check up every detail in a 
business-like way. 

No salesman employed by the concern should have the 
final decision as to the amount to be offered by the concern 
for the second hand car. This valuation should in every 
case be made finally by some other party than the one who 
is trying to sell the new car. The reason for this is that the 
average salesman in his strong desire to make a sale of a 
new car frequently lets this desire run away with his better 
judgment or causes him to shade his views on the value of 
the second hand car strongly in favor of the customer. 

Finally, at the time the actual transaction is completed, 
the dealer should secure from the car owner a bill of sale 
for the used car which he accepts. A model of a formal bill 
of sale is presented in Figure 4. Any other wording which 
embodies the terms of the sale will answer the same pur- 
pose. This bill of sale should be attached to the used car 
statement, such as we have described above, and carefully 
preserved by the dealer to guard against any possible chance 
of later difficulties over ownership and claims on the car. 

Figure 4 

BILL OF SALE 
KNOW ALL MEN" BY THESE PRESENTS That 

of ".'.". '.V.V/.'. '.'.'. '.'.'. '.'.'. '.'.'. '.'.'. '.'.'.'. '.'.'.'.'.'.'.'. YYYYYYYY YY. YYYYYYYY 

party of the first part, for and in consideration of 

($ ) lawful money of the United States, and other 

good and valuable considerations, to 

in hand paid at or before the ensealing and delivering of these 

presents by party of the second part, 

receipt whereof is hereby acknowledged, having bargained and 
sold, and by these presents do grant and convey unto said party 
of the second part, its successors and assigns, the automobile 
equipped as shown on the second-hand car statement I have given 
them. 

123 



AUTOMOBILE SELLING 

TO HAVE AND TO HOLD the same unto said party of the second 

part, its successors and assigns forever. And do for 

sel heirs, executors and administrators, covenant and agree 

to and with said party of the second part, that good 

right to convey the said automobile and the same is free from all 

liens and encumbrances and that will 

warrant and defend the sale thereof against all and every person 
and persons whomsoever. 

IN WITNESS WHEREOF 

hereunto set hand and seal 

the day of in the year one thousand nine 

hundred and signed, sealed and delivered. 

In the presence of : 

(SEAL) 

STATE OF 



COUNTY OF 

On this day of 191 . ., before me per- 
sonally appeared 

to me known and known to me to be the 

individual described in and who executed 

the foregoing instrument, and to me acknowledged 

that executed the same. 

STATE OF } 

COUNTY OF J 

being duly sworn deposes and says 

that he is the grantor in the foregoing bill of sale; that the auto- 
mobile and equipment therein described are at the time of the 
execution hereof the sole property of said grantor, and that there 
are no liens or other charges upon the same by way of conditional 
bill of sale, chattel mortgage or otherwise; and that said grantor 
has the absolute right and power to convey full and clear legal 
title thereto. 

This affidavit is made for the purpose of inducing said 
to purchase the same by the fore- 
going bill of sale. 

Subscribed and sworn before me this day of 

191... 

Service. — Too much free service is the rock upon which 
numerous automobile concerns are smashed. Service to 
automobile purchasers is here to stay, but how to handle 
it so that it does not run away with the business is one of 
the most difficult problems that an automobile dealer must 
face. It seems safe to say that the best way to meet this 
problem is to decide in advance just how much service is 

124 



POLICIES 

to be given to car purchasers and then to stick as closely 
as possible to the decision. 

Having decided upon the amount of free service to in- 
clude with a car sale, the next thing is to have very definite 
agreements with customers as to what service is to be given 
to them free after they have purchased their cars and then 
to live up to this agreement to the letter and expect the cus- 
tomer to do the same. Great care needs to be exercised 
to prevent the salesmen in their enthusiasm from making ad- 
ditional agreements. What is promised should be in writing 
and no verbal agreements should be permitted. 

It is highly essential that the car owner should be kept 
well sold. If he is well satisfied he is the best advertise- 
ment that the concern has. Therefore, any policy adopted 
with reference to the amount of service that is to be offered 
must be enforced tactfully. It may well be that in cases of 
misunderstanding the dealer had better lose a few dol- 
lars in service than to lose the good will of his customer. 
Clear-cut advance understanding is the most certain method 
of avoiding trouble. 

There is a certain amount of service that may rea- 
sonably be demanded of the automobile dealer by the one 
who purchases the car. For example, the dealer should 
see that the car is in absolutely perfect running con- 
dition when it goes out. After a car has been run a hun- 
dred miles or so, it may need to be tightened or adjusted 
here or there, and it would seem reasonable that such service 
should be freely given by the dealer. If there are any 
defective parts in the car, the dealer should willingly take 
charge of these, and send them back to the factory for 
repair or adjustment. The dealer owes it to the purchaser 
of the car to advise him on its care and use, and most deal- 
ers find it highly profitable to teach their car purchasers 
not only on the care of the car, but how to get the best 
service out of it. After the car has been run a month it 

125 



AUTOMOBILE SELLING 

should be thoroughly inspected. The best automobile me- 
chanics say that there should be monthly inspections. At 
least one such inspection may well be given by the dealer 
without charge. Several automobile dealers go so far as to 
provide free periodical inspections for a year following the 
sale of the car. It seems better, however, to agree on an 
amount of service and then the dealer may at his discretion 
and purely as a matter of good-will (understood by the 
customer as such) throw in considerable more free service. 
It is better to promise little and deliver much than to prom- 
ise much and deliver little. Small matters that do not take 
up much time and which help to hold the customer to the 
concern that sold him his car may be freely undertaken in 
most cases. As for example, making small motor adjust- 
ments, tightening nuts, adjusting the carburetor, looking 
over the tires and advising on their care, testing storage 
batteries, and even changing tires. In the Northern part 
of the country, where the winters are severe, several auto- 
mobile dealers have found it advantageous to send to their 
customers very complete instructions on how to take care 
of their cars, either in storage or in use. The dealer has 
everything to gain by showing the owner how he may con- 
tinue to use his car even in the coldest weather. Winter 
use will make it possible for the dealer to increase his acces- 
sory sales and at the same time help his customers to secure 
greater service from their cars. 

Instruction for car owners. — Many automobile concerns 
conduct classes during dull seasons of the year for automo- 
bile owners on the construction of the car, its care and 
operation and how to make repairs. Even though a car 
dealer may have a repair shop in connection with his place 
of business, it may be highly advantageous to show the cus- 
tomers how they may make their own repairs. There is 
nothing to be lost by doing this. Repairs of an important 
nature will have to come to the shop, anyway, where tools 

126 



POLICIES 

and supplies are available. In the long run there is nothing 
to be gained by loading up the consumer with expense that 
can be saved to him. It is important that the expense of 
running a car should be kept as low as possible, but when 
there is a need for service or repairs, such service should 
be efficiently performed, and a charge made to cover the 
costs and a fair profit besides. 



127 



CHAPTER XV 
LEAKS AND WASTES IN THE AUTOMOBILE BUSINESS 

Numerous leaks and wastes, small in themselves, but con- 
tinually occurring, and in the aggregate making up a matter 
of importance constitute one of the chief sources of the high 
cost of doing an automobile business. Some of these may 
be mentioned here. 

Water. — The expense for water runs into a great many 
dollars per month in any establishment where automobiles 
must be washed. Employees are usually careless about shut- 
ting off the water when they are through using it. A con- 
siderable saving can be effected by exercise of care in 
this regard. A little careful attention on the part of em- 
ployees to this point will be an important saving for the con- 
cern. 

Soap. — Another item upon which saving may be made 
is the use of soap. Careful determination in advance of 
the amount of soap required for washing the cars usually 
shows that in most concerns considerable soap is wasted. 
The saving of soap by careful use will result in the saving 
of a great many dollars per year. 

Gasoline. — One of the important sources of waste about 
an automobile establishment is in the sale of gasoline. Sales 
are not always registered in every establishment. Some- 
times there is over-measurement. In other cases the em- 
ployee who operates the pump is careless and the gas is 
spilled on the pavement and if the automobile owner pays 
for what is wasted he is not getting his money's worth, 
otherwise the firm loses. 

128 



LEAKS AND WASTES IN AUTOMOBILE BUSINESS 

The best results are obtained in the handling of gaso- 
line, when a careful record is kept of the amount of gasoline 
going into the tank, and where records are taken twice a 
day of sales. Some one is made responsible for the gasoline 
supply. Sales must tally with supplies purchased. The re- 
sult is usually a considerable saving for the concern. 

Oils. — In a similar manner there is, in many concerns, 
considerable waste in the handling of lubricating oils. 
Proper training of employees, consisting usually of merely 
calling their attention to the point, and following up the 
matter by supervision, eliminates a large part of this loss. 

Depreciation of merchandise. — There is an apparent 
tendency around automobile concerns to handle accessories 
and parts in a careless manner. There is no waste so in- 
sidious as that resulting from poor care of merchandise 
resulting in making it non-salable. Scarcely any customer 
cares to buy goods that are dirty or tarnished or which are 
packed in soiled or broken cartons. It matters not that the 
purpose for which the goods is intended can still be served 
fully. The appearance of the merchandise goes a long way 
in helping to sell it. A dealer who keeps his stock in good 
condition, fresh looking and clean, suggests quality thereby 
to his prospective customer. People always and everywhere 
like to buy nice, fresh, new looking merchandise. 

Accumulation of "stickers". — Accumulation of unsalable 
stock is another serious source of waste in an automobile 
business. Such accumulations are generally due to over 
buying, that is to say, buying in dozens when a quantity of 
one, two, or three would be sufficient. Changes in fashion 
affect automobilists strongly and this leak can best be obvi- 
ated by following the careful course of buying only as 
needed, particularly in new lines of goods in which the 
market demand is still an unknown quantity. Quantity dis- 
counts are as a rule offered. It is the quantity discount 
that tempts the dealer to over-buy, and it is just this tempta- 

129 



AUTOMOBILE SELLING 

tion that the successful dealer should be on the alert to 
avoid. Which is the better, to take a smaller margin and 
come out with a fair net profit on a sale of one article, or to 
get a large discount on a dozen, but fail to sell half of the 
goods? The answer is obvious. There is an old rule in 
other merchandising lines that the best way to buy is to 
buy from hand to mouth. This rule may well be observed 
in the automobile business. Speculation, particularly in ac- 
cessories and supplies, is a hazardous undertaking. Nine 
times out of ten it goes wrong. The dealer must be care- 
ful to carry the goods that will sell in stock. It is a mistake 
not to try out new lines, but the emphasis should be placed 
on buying only in small lots. 

Electricity. — In the automobile business, the same as in 
every other business, there is likely to be considerable waste 
due to leaving lights burning when there is no longer a need 
for them. The remedy is simple. Get every employee in 
the place to cooperate in cutting out wastes of this kind. 

Forgetting to charge sales. — An investigation of estab- 
lishments without good accounting systems frequently 
shows that sales are sometimes made for credit and with- 
out taking the time to make the charges at the time of the 
sale. Forgetting to charge sales is like throwing money 
into the sea. It is an inexcusable leak. A good, up-to-date 
cash register, with devices to indicate credit sales, together 
with a proper system of recording credits, will prevent 
such losses. 

Too much desk work. — Some salesmen take too much 
time in doing their office desk or routine work. This is a 
source of considerable waste. A salesman's time is really 
only productive when he is talking to a prospect in an effec- 
tive way. Everything else is subsidiary to such work with 
a prospect. There is, no doubt, some justifiable waste of 
time in selling. That is to say, it cannot be avoided. But 
instruction of salesmen should take the direction of point- 

130 



LEAKS AND WASTES IN AUTOMOBILE BUSINESS 

ing out how to eliminate the useless motions and the useless 
efforts and how to put in full time in the best way. Some 
men waste most of their energy in doing things the wrong 
way, the long way, or the hard way. Every employee should 
be trained to plan his work and to think while he is doing 
his work on how to improve his method of doing it. Each 
move should count. 

Sales that do not stick. — One of the sources of waste that 
some concerns suffer from is due to the goods that come 
back or the sales that do not stick. The fault is usually 
in the selling. The prospective customers are not fully 
sold. They merely agree to take the merchandise out, but 
they are not sold well enough to keep it. Not being well 
sold, they change their minds. Salesmen should be im- 
pressed with the fact that no salesmanship can be consid- 
ered as first class unless it results in sales that stick. A 
customer who is well sold prizes his new possession far 
above the sum paid for it. 



I3i 



CHAPTER XVI 
AN ACCOUNTING SYSTEM THAT ACCOUNTS 

Some primitive people try to run their businesses with- 
out an accounting system. There are very few, however, in 
the automobile business who do not keep records of one 
kind or another. According to all observations on the mat- 
ter, however, there is a great deal of room for improve- 
ment. The accounting systems that are in use, as a rule, 
do not serve their complete purpose. 

Standard accounting systems. — In the old days gone by, 
a retailer's bookkeeping system would merely show such 
facts as the following: (i) customers who owe money to 
the concern and the amount owed by each; (2) creditors 
owed by the concern and the amount owed to each; (3) 
the amount of cash on hand; (4) where the money taken 
in goes to; (5) merchandise on hand. And it was a good 
accounting system that showed all of these items accurately 
and at any time the manager of the business desired the 
information. 

More information needed. — Now, however, the up-to- 
date business man recognizes that he needs a great deal 
more information than enumerated above. The modern 
business manager wants to know: 

1. Balance sheet. — What the condition of the business is 
at any given time. By comparison with past statements of 
a similar character, it may be possible to determine whether 
the business is progressing satisfactorily or not. This 
statement is known as the Balance Sheet. (See Figure 5.) 

132 



AN ACCOUNTING SYSTEM THAT ACCOUNTS 



Fig 


5. BALANCE SHEET. 






Assets 






Liabilities 






Petty Cash 






Accounts Payable 

Notes Payable 






Bank 










Accounts Receivable. . . . 






Interest Payable 






Notes Receivable 






Accrued Taxes 






Interest Receivable 






Accrued Payroll 






Prepaid on Cars 






Reserves: 






Merchandise Inventory: 






Depreciation 






New Cars 






Doubtful Accounts. . . 
Contingencies 






Used Cars 




Repair Parts 






Capital Stock 






Accessories 






Surplus 






Supplies 






Profit or Loss 






Unfinished Shop Work 












Land 












Buildings 




Shop Equipment 












Office Equipment 












Store Equipment 












Unexpired Insurance .... 












Supplies 












Prepaid Interest 












Total Assets 






Total Liabilities 











133 



AUTOMOBILE SELLING 

2. Profits and expenses. — A detailed account of income 
and expenses. In the better kind of statements of this 
character the profits and expenses are specifically traced to 
their sources so that changes in business methods can be 
effected, eliminating the useless expenditures and adding to 
the forces in the business producing the larger profits. This 
is known as the Income and Expense Statement. (See 
Figure 6.) 

3. Department record. — A statement of income and ex- 
penses by departments. In any business in which there are 
several sources of income it is almost certain that the man- 
ager will be uncertain at least as to the degree of profit 
making capacity of each source. For example, in a busi- 
ness in which there are, let us say, eight different lines 
through which income is obtained, a general statement of 
income and expenses for the whole business will not reveal 
specifically where the profit or loss shown in the general 
statement originates. A general profit may be shown. In 
fact, this may come entirely from one or two of the total 
of eight lines, and the remainder may be losing lines. Some 
one of these lines may really be exceedingly unprofitable, 
but these facts may be wholly unknown to the manager un- 
less he adopts some method in his accounting that will show 
him precisely where his profits come from and where his 
expenses go. There is need, then, of departmentizing to 
correspond to the lines of work, or of service, or of mer- 
chandise, it handles. A statement presenting this informa- 
tion may be called a statement of Income and Expenses by 
Departments. (See Figure 7.) 

4. Stock record. — A stock inventory. In the past in the 
retail business it was customary to take a merchandise in- 
ventory once a year or thereabouts. At all other times dur- 
ing the year, the managers could do no better than guess at 
the amount of stock actually carried. The more modern 
method of doing business is to have what is known as a 

134 



AN ACCOUNTING SYSTEM THAT ACCOUNTS 



Fig. 6. INCOME AND EXPENSE STATEMENT. 





Month 


Year to Date 




Gross 
Sales 


Cost 


Gross 
Profit 


Gross 
Sales 


_, , 1 Gross 
Cost | Profit 


Sales: 

New Cars 














Used Cars 




Repair Parts 




Car Repairs 




Accessories 




Gasoline, Oil 




Storage 

Miscellaneous 










Total 








Expenses 








Salaries and Wages 




Commissions 




Advertising 




Rent 




Heat 








Telephone and Telegraph 
Delivery 










Insurance 








Office Supplies 




Discount and Allowance . 
Depreciation and Upkeer. 
Bad Debt Losses 






) 








Cash Over and Short 




Miscellaneous 








Total Operating Expen 


se 












Operating Profit (Loss in Red). 
Purchase Discount 














Interest Earned 

















Deductions: 

Interest Paid 








Miscellaneous 




Total 












Total Net Profit 



















135 



AUTOMOBILE SELLING 



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AN ACCOUNTING SYSTEM THAT ACCOUNTS 

perpetual inventory or Stock Record which will show for 
every day statistically what stock is on hand. This record 
should be supplemented by the information gained from the 
annual physical inventory. Discrepancies will need inves- 
tigation. (See Figure 8.) 

Explanation of terms. — Probably but little explanation 
is needed on the meaning of the items presented in the 
blanks accompanying this chapter. In Figure 5, the Balance 
Sheet, the item "Petty Cash/' covers the amount of cash 
in the till or cash register. The next item, "Bank," covers 
the amount of money in the bank, "Accounts Receivable" 
calls for a total of all money outstanding from customers. 
"Notes Receivable" similarly calls for the total of all 
amounts outstanding from customers but for which the con- 
cern hold notes. "Interest Receivable" covers interest that 
has accrued, but which has not yet been paid by customers 
on their notes, or on their accounts if an interest charge is 
made on accounts. "Prepaid on Cars" calls for a total of 
sums of money advanced in payment for cars not yet in 
stock. The "Merchandise Inventory" for each of the items 
presented calls for a total valuation of merchandise as per 
inventory or stock record. "Land, Buildings, and Equip- 
ment of Various Kinds" call for the valuation of these items 
respectively. "Unexpired Insurance" includes the amount 
of value of insurance yet unexpired. For example, if this 
statement is prepared at the end of a six months' business 
period, and if a year's insurance was purchased at the be- 
ginning of the year, there are still six months of insurance 
to run, and, therefore, there are six months of value to be 
recorded among the assets of the firm "Supplies" include 
such items on hand as are used in the business and not sold. 
"Prepaid Interest" covers interest that has been advanced 
to creditors before actually due. A total of all of these 
items gives the total assets of the concern. 

Against these there are the liabilities, under which come 

137 



AUTOMOBILE SELLING 



















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138 



AN ACCOUNTING SYSTEM THAT ACCOUNTS 






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139 



AUTOMOBILE SELLING 

"Accounts Payable," which covers amounts due to creditors. 
"Notes Payable" calls for the amount outstanding against 
the concern in the form of Promissory Notes. "Interest 
Payable" calls for a statement of the amount of interest 
actually due but not yet paid by the concern. "Accrued 
Taxes" covers the amount due for taxes for such part of 
the year as has expired, and which will have to be paid 
at the end of the year. "Accrued Payroll" includes all 
salaries and wages and commissions, which if the business 
were closed on the day the balance sheet is drawn up, would 
have to be paid. 

"Reserve for Depreciation, Doubtful Accounts, and Con- 
tingencies" in the record presented here are intended to be 
shown as bookkeeping funds. They do not represent actual 
funds set aside. They merely point out the extent of lia- 
bility which must be subtracted from the net assets before 
there can be any profit or loss computed. "Capital Stock" 
is the capitalization of the concern, if it is a corporation. 
If it is an individually owned business or a partnership, 
this item would of course be omitted. "Surplus" is that 
amount over and above capitalization which has been earned 
and piled up in the assets. Finally the total of all liabilities 
presented subtracted from the total assets yields the profit. 
If the liabilities exceed the assets, a loss must be shown, 
and this is usually indicated in the statement in red ink. 

Some explanation may also be helpful of the items in- 
cluded in the income and expense statement under expenses. 
"Salaries and Wages" include the salaries and wages of ex- 
ecutives, salesmen, office employees, shop employees, store 
employees, demonstrating employees, in fact every one who 
draws a regular salary or wage from the concern. "Commis- 
sions" cover expenses paid out to salesmen in this form 
rather than in the form of salary. As described elsewhere, 
salesmen are frequently paid on a commission basis instead 
of on a salary basis ; hence the item is put down separately. 

140 



AN ACCOUNTING SYSTEM THAT ACCOUNTS 

The amount of salaries and commissions in a normal busi- 
ness should average about 6 to 8%. 

"Advertising" includes all expenditures for space in news- 
papers and periodicals, for letters and circulars and postage, 
for street car cards where these are used, for bill boards, 
for space taken in local programs, and for novelties bought 
and distributed for advertising purposes. All expenses for 
window displays, operating and lighting electric signs, win- 
dow rent, if incurred, and the cost of window lights, and 
all forms of miscellaneous advertising, such as decorations, 
are included. Generally charitable donations made by the 
firm are included under advertising also. The amount of 
this item ranges in successful automobile dealers' places of 
business from 0.5% to 3 or 4% of sales. Probably 
the average dealer can effectively spend 1J/2 to 2% of his 
sales. 

"Rent" is an expense which should be charged, no matter 
whether the manager of the business owns the building or 
rents it. If the building is owned, the amount charged 
should be equivalent to that for which it could be rented 
to others, just as the manager should receive a salary from 
his business for his time as if employed by another concern, 
so his building should receive a rent from the business as 
if rented to another. The rental should run from y 2 to 3% 
of sales. 

"Heat" covers such items as fuel, repairs and deprecia- 
tion of heating equipment, etc. 

"Light and Power" include all payments for lighting the 
store, office and shop, and all materials necessary to keep 
the lighting and power systems in order. 

"Telephone and Telegraph" are sufficiently obvious to 
need no explanation. 

"Delivery" covers all the expenses of putting the goods 
out to customers who have bought them. It includes freight 
and express charges that are met by the concern. 

141 



AUTOMOBILE SELLING 

"Insurance and Taxes" are also obvious and need no 
explanation here. 

"Office Supplies" includes stationery of all sorts, account 
books and forms, typewriter supplies, printing and postage 
not used for advertising, and transportation charges on 
office supplies. 

"Discounts and Allowances" cover expenditures made by 
the concern in the way of rebates or allowances made neces- 
sary to secure business. 

"Depreciation and Up-keep" include all outlays for keep- 
ing the building and equipment in good order. A certain 
amount must be charged of! regularly for depreciation, 
because at the end of a certain period of time the fixtures 
and equipment will become obsolete or out-of-date or worn 
out, and will have no value. When this time comes, this 
equipment should have paid its way by charges made in 
the expenses presented here. 

"Bad Debt Losses" cover all money lost by the concern 
through inability to collect accounts. It not only includes 
the amounts due, but not collected, but also includes all 
expenses of trying to collect from slow and poor risks. 

"Cash Over and Short" is an item which in good busi- 
ness practice should not need a place in the expense list at 
all. If the cash account is properly kept there will be but 
rare instances of "Cash Over or Short" what it should be. 
Such an account as "Cash Over or Short" when found in 
an automobile dealer's accounting system illustrates the need 
for better system than has been in use up to the present. 

The "Cost of Merchandise" entered in the income and 
expense statement covers not only the actual billed cost 
less trade discount, but also includes the freight, express 
and delivery expense of getting the cars and other mer- 
chandise into the dealer's place of business ready for sale 
to prospective customers. What is meant by cost is in this 

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AN ACCOUNTING SYSTEM THAT ACCOUNTS 

case the delivered cost of the merchandise the dealer has 
for sale. 

Summary. — These four analysis sheets, the balance sheet, 
the income and expense statement, the income and ex- 
penses by departments statement, and the stock record, will 
show scientifically what the condition of the business is. 
These four statements, in addition to the records usually 
kept in all bookkeeping systems, as described in the first 
paragraph of this chapter, are absolutely necessary if the 
business manager wants to know what he is doing and 
where he is going in his business. 

No attempt will be made here to outline a complete ac- 
counting system including blanks for cash books, journals, 
and ledgers. Any set of blanks already in use can be 
adapted so as to produce the information called for in mak- 
ing up these statements. One may use bound volumes, loose 
leaf systems or card records. Some concerns like one type 
of record, others prefer forms quite different. Any text 
book on bookkeeping will describe these various systems. 

If the automobile dealer will write to the Federal Trade 
Commission, Washington, D. C, and ask for a copy of 
"A System of Accounts for Retail Merchants," he will ob- 
tain a pamphlet which presents in brief form some very 
excellent suggestions on a bookkeeping system that can be 
applied with certain variations to his own business. The 
Federal Trade Commission supplies this without charge. 

If any ordinary set of books, adapted as suggested here, 
is properly kept, it should not require more than an hour 
or two to draw up the four statements described in this 
chapter at any time desired. Certainly they should be pre- 
pared at least monthly. There is nothing burdensome about 
the carrying out of these suggestions. The results to be 
obtained are sure to be worth a great deal to the manager. 



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